Refund of Share Application Money

This query is : Resolved

JIGAR GOVINDBHAI DOSHI (Querist)
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24 January 2009 In one of the company, they make public issue in 1993-94. They put the application money in separate bank account in CENTRAL BANK. However, today they are a showing balance in that bank and application money refundable account eventhough more than 15 months passed.

However, as per section 205c of the companies act, it has to be transferred to INVESTOR PROTECTION FUND. The official of the company has told that CENTRAL BANK did not give any debit advise so they kept the account as it is.

However, I am not convenience with the answer and I think that amount has to be transferred to INVESTOR PROTECTION FUND. Give your valuable suggestions.

Regards,

Jigar

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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24 January 2009 First get the certificate from the Bank whether, funds are available.

Next get the reconciliation statement from the company which cheques are outstanding

Find out the returned cheques from post.

Then after concluding it is an unclaimed amount it has to be transferred to INVESTOR PROTECTION FUND.

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