Acceptance of share application money

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Neeraj (Querist)
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25 January 2009 Is it legally valid for a private limited company to accept the share application where the sum of such share application money and the paid up capital exceeds the authorised capital.
I think it is not legally valid. However I have seen many companies which have accepted share application money in excess of authorised capital of the company

CA Sanjeev Kr Jain

CA Sanjeev Kr Jain (Expert)
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25 January 2009 excess amt could be assumed as premium

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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25 January 2009 Sanjeev is correct. The excess share application money shown in balance sheet is alloted with Premium later on. Legally, its face value can't exceed Authorised SHare capital.

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