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Opening of bank account

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Upendra Mani Tripathi

Upendra Mani Tripathi (Querist)

01 August 2014 Dear sir, it is mandatory to open separate account for issuance of shares to its existing shareholders.

Ankur Garg

Ankur Garg (Expert)

01 August 2014 Allotment of shares to existing shareholders is also a kind of private placement u/s 42 of Companies Act, 2013 and as per proviso to sub section (6) of section 42, monies received on application under this section shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose other than—
(a) for adjustment against allotment of securities; or
(b) for the repayment of monies where the company is unable to allot securities.

Kindly wait for the opinion of other experts.

Thanks

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