About Share Application Money

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Anwar Shaikh (Querist)
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17 December 2009 Dear Experts,

Even if Authorised capital fully issued & paid up, is it a valid to shown money received from shareholders and non shareholders as an “Share Application Money”, under head Share capital. Also company had not made any application to ROC for increase in authorised capital.

CS Arpita Rajpurohit

CS Arpita Rajpurohit (Expert)
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17 December 2009 in ur case,u can show application money, only when u get ur autho. cap. increased.

Sudhindra

Sudhindra (Expert)
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11 January 2010 As can be understood from ur question that when when the authorised capital is fully paid up and issued then where is the question of receipt from non-shareholders, as u cannot issue capital more than the authorised capital, secondly fresh capital can be issued only with the increase in authroised capital.

If it is within the limit of authorised capital and if the shares are not fully paid up then the same may be shown as share application money as issued but not paid up and issued and paid up but not allotted

Sudhindra

Sudhindra (Expert)
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