Allotment of shares to the promoters

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Mamta Batra (Querist)
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02 February 2010 Is there any time limit mentioned under the company law to depsoit the amount of equity share capital(subscribed in the MOA)in the bank account of the newly incorporated company?

Ankur Garg

Ankur Garg (Expert)
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02 February 2010 No there is no statutory time limit any where mentioned in law.

However as per the intention of law the same is required to be deposited immediately after opening of bank account w.r.t. the board resolution passed in the Ist board meeting for opening of bank account.

Mamta Batra

Mamta Batra (Querist)
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02 February 2010 can the promoter deposit the amount in installments say first month 1,00,000 then again second month 1,50,000 and so on.

Mamta Batra

Mamta Batra (Querist)
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02 February 2010 can the promoter deposit the amount in installments say first month 1,00,000 then again second month 1,50,000 and so on.

Ankur Garg

Ankur Garg (Expert)
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02 February 2010 As there is no tracing (as far as ROC is concerned) of such amount, it may be deposited by them later or in installments. However if you follow the intention of law that would be great to avoid any kind of future problem.

Rasesh

Rasesh (Expert)
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02 February 2010 There is no provision in the Act to allow the promoters to deposit the amount in instalments.

At the same time, as stated by Mr. Ankur, there is no statutory time limit any where mentioned in law for depositing of the subscription amount. However, as a matter of good governance, the same should be done at the earliest.

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