Issue of share certificates

This query is : Resolved

NitinPanthri (Querist)
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19 February 2017 Dear Experts

My company was incorporated in the month of Nov 2016 but account opening took 3 months owing to PAN and other formalities. Thereafter we received share application money from subscriber to Memorandum of Association of Company.

Time limit for issue of share certificate is 2 months from the date of incorporation of Company (section 56). How should we go forward now? Three months have already been passed.

Waiting for your valuable suggestions. Thanks in Advance!

Regards, Nitin

CS JAY GOHIL

CS JAY GOHIL (Expert)
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20 February 2017 FIRST SUBSCRIPTION MONEY CAN BE ACCEPTABLE IN CASH ... SO TREAT THAT ALL MONEY OF FIRST CAPITAL AS CASH RECEIPT FOR SHARES. AND ISSUE SHARE CERTIFICATE

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NitinPanthri

NitinPanthri (Querist)
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22 February 2017 Thanks Jay!

But the subscribed capital is Rs. 10 Lakhs. This can't be shown as cash contribution. What to do now?

CS JAY GOHIL

CS JAY GOHIL (Expert)
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27 February 2017 WHY IT CANT BE SHOWN AS CASH? ... FIRST CAPITAL MONEY COULD BE IN CASH

NitinPanthri

NitinPanthri (Querist)
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04 March 2017 The directors don't have that much cash with them.. If done so, they won't be able to justify in front of Income Tax authorities. That's why the contribution can't be shown as Cash payment.

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