Limited company incorporation

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Querist : Anonymous

Querist : Anonymous (Querist)

30 June 2012 Is it it required a hard core cash of rs. 5 lac minimum for incorporation of public ltd co. ?

Ajay Mishra

Ajay Mishra (Expert)
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30 June 2012 Hi

No, it is not mandatory to have minimum 5 lac hard cash for incorporation of company.

Querist : Anonymous

Querist : Anonymous (Querist)

03 July 2012 Dear Sir,

Thanks for your reply.

Than what is the interpretation of following:
"FOR INCORPORATION OF PUBLIC LIMITED CO.,IT REQUIRES MIN 5 LAC PAIDUP CAPITAL."

Ajay Mishra

Ajay Mishra (Expert)
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03 July 2012
Hi,

Its says, 5 lac paid up capital, it means capital should be 5 lac not says 5 lac as hard cash. You can take same money from subscriber letter on, after incorporation of company.

Querist : Anonymous

Querist : Anonymous (Querist)

04 July 2012 Dear Sir,

Is there any time limit for asking 5 lac from the subscribers after incoporation ?
If we are not taking or asking remaining amount suppose 4 lac after incorporation than is there any legal implecations ?

Ajay Mishra

Ajay Mishra (Expert)
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04 July 2012 Hi

A subscriber to memorandum cannot, after issue of certificate of registration, repudiate his subscription on ground that he was induced to sign by misrepresentation of an agent of company. [Metal Constituents Ltd., In re (1902) 1 Ch. 707].

If subscribers to memorandum have any objection to memorandum and articles of association, the time to object is before putting their signatures to it. [East Bengal Sugar Mills Ltd., In re (1941) 11 Comp Cas 169 (Cal)].

In accordance with the provisions of section 36(2)of the Companies Act, 1956, all money payable by any member to the company under the MOA or AOA shall be debt due from him to the company. Further, a subscriber to the memorandum must pay for his shares in cash even if the promoters have promised him the shares for services rendered in connection with the promotion of the company.

Regards

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