Share allotment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2010 Hi
Respected Members

can any one tell me?

I am doing Tax audit of PVt. LTd.

1. In this case share application money received by company but share not alloted by company so what to do in this case is there any disclosure requirements?

2. What is the time limit for allotment of shares in case of PVt. Ltd. as well as Public limited company?

3. and what's the penalty aur interest if leviable?

Thanks
in advane

Ankur Garg

Ankur Garg (Expert)
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13 September 2010 If the Company has accepted the Share Application Money you may do one simple thing. You may record the above transaction i.e. receipt of share application money and assurance given to proposed allottee in the board meeting minutes.

In other words simple noting of such receipt in the board minutes would be enough. No need to take any kind of approval from any concerned authorities.

Regarding time limit to convert such share application money into capital the law is silent. However as per practice allot share with 6 months of the receipt of application money.

Further collect the share application form from the proposed allottee for your record. You may download the sample share application from the link mentioned below:

https://www.caclubindia.com/share_files/files_display.asp?files_id=11908

Regards

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