Return of allotment

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Bhakti (Querist)
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08 April 2010 I have authorised capital of Rs 1 lac.
The same needs to be increased to Rs 4 lacs.
Now before form no 5 gets approved, is it possible to file the return of allotment in form no 2 for allotment of Rs 3 lacs share?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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08 April 2010 No, Until & unless , Form no 5 is not approved ,you can't fil form 2 for allotment of shares. Because increase in authorised capital is approved only after approval of Form no 5.

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CS Vandana Kacholia

CS Vandana Kacholia (Expert)
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08 April 2010 agree with suggestion as allotment can be done only when you will get the approval to increase the authorised share capital.

Regards

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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08 April 2010 AGREE. FORM 5 IS REQUIRED TO BE APPROVED BEFORE YOU CAN FILE FORM 2.

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Bhakti

Bhakti (Querist)
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08 April 2010 Thank you so much.
My authorised capital will stand increased to Rs 4 lacs. Now even paid up capital has to be increased. That means i will have to write Rs 4 lacs in paid up capital in form no 5 eventhough the monies have not been received at the time of filing the form?

Ankur Garg

Ankur Garg (Expert)
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08 April 2010 Disagree with everyone to a certain extent.

You can pass your resolution for allotment immediately after general meeting (increase in AC) resolution.

For example your GM date is April 10 and your BM allotment date is April 11, then effective date of increase in your paid up capital would be april 11. In other words there is no need to wait for approval of form 5 at least for passing allotment resolution.

However approval of your form 2 for allotment is dependent on approval of form 5 for increase in AC.

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