corporate law

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GIRISH D.P (Querist)
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16 July 2009 Please clarify me the following doubts

1. Can a Public or Private company receive share capital (application, allotment) in HARD CASH (and not through Cheque).

2. If they have done so, and alloted the shares and issued share certificates, WHAT ARE THE CONSEQUENCES? Please give me relevent sections and penalties.

GIRISH

Ankur Garg

Ankur Garg (Expert)
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16 July 2009 Receiving share application money in hard cash and allotment on that basis not prohibited anywhere in law.

But it is not advisable at all as it may creat many tax complications.

Regards

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