Paid up capital not received

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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 A Private Limited Company is carrying on business for more than 8 months and on 31st march 2013, balance sheet is going to being prepared. There is query regarding that the authorised capital of company is one crore, and in MOA the 4 promoters subscribed that they will be bring up 25 lakhs each, but 2 of them did not bring the capital what are the consequences on the company and on director?
They do not want to do any legal proceeding on one another as they are brother

Ajay Mishra

Ajay Mishra (Expert)

13 March 2013 Hi

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.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 Hi Sir,
thanks for reply

but the both promoters cannot bring any of the amount as paid up capital what action should be taken by CA and CS, would there be any effect in balance sheet,
would the company would be wind up

Ajay Mishra

Ajay Mishra (Expert)

13 March 2013 They have made written commitment to become a member of company by subscribing MOA, he can not ignore it. He will be liable to pay for that. He can not escape his liability.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2013 would the company be wound up if he did not bring his share

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