Private placement

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 May 2018 As per companies act , allotment has to be made pursuant to private placement by the co. , within 60 days of receipt of application money..so what is we receive application money on different dates?

Jatin Bajaj

Jatin Bajaj (Expert)

21 May 2018 Suppose For Example your Company receive application money on 5th May 2018, 10th May 2018 and 20th May 2018. Company has to allot shares within maximum 60 days of receiving application money. so Company has to allot shares by seeing the first allotment i.e. before 4th July 2018. No fresh application shall be made under private placement unless previous allotment is made. But in case of right issue, if any application money is received after 4th July, then in that case new allotment shall be made.

Querist : Anonymous

Querist : Anonymous (Querist)

21 May 2018 So it means allotment of applications received till 4july has tobe made on till 4 july and what if further application is received on 5july .? Then we will see the limit fot its allotment from 5 july.?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now