Allotment of Shares

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Kalpesh (Querist)
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22 July 2009 A company was formed with a paid up capital of Rs 1 lakh. Three promoters subscribed the Memoraundum . One of the three subscribers did not put in subscription money . The other two subscribers took up his portion to fulfill the requirement of minimum capital of Rs 1 lakhs and subscribed . We can allot the Shares worht rs 1 lakhs to these two promoters . Is it O.k

Ankur Garg

Ankur Garg (Expert)
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22 July 2009 Hi,

If in Form 1 and in MOA at the time of incorporation you mentioned the name of all 3 promoters, then you have to devide Rs 1 lakhs paid up capital in all 3 promoters.

Further no formal allotment is requirde in case of subscribers and they are deemed members and shareholders of the company.

No form-2 filed in case of subscribers.

Regards

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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22 July 2009 The subscribers to the memorandum should subscribe exactly the number of shares they have agreed to subscribe/mentioned against their names in the MOA of the company. In other words,in the given case, the two subscribers cannot make up the shortfall of the third subscriber.

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