Reg:share allotment URGENT!!!

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Priya Sharma (Querist)

22 January 2010 Please clarify.....

When the share are subscribed for in a private company, is it necessary that the date of allotment of the shares shall be the date of subscription of shares only???

Regards

Priya Sharma

CA Amit Kumar Hallen

CA Amit Kumar Hallen (Expert)

22 January 2010 Ms Priya,

No it is not necessary that the date of subscription will be the date of allotment. As and when the company receives the subscription the company in its board meeting decides to whom the shares will be alloted and what will be the date of allotment subject to Companies act.

Priya Sharma

Priya Sharma (Querist)

22 January 2010 But I came to know that the date of subscritption of the shares will only be the date of share allotment.

Can you provide me the specific provision for your reply.

Thanks

Priya Sharma

CA Amit Kumar Hallen

CA Amit Kumar Hallen (Expert)

22 January 2010 Priya

There is no specific provision in this regard. But one simple concept is that when the subscription were received in different dates than how the company deals with this. That's why the co hold the board meeting at decide the date of allotment

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