Share application

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lalit kumar sharma (Querist)
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23 November 2007 Dear Sir,

I want to know about share application money because for last 11 month my share application money didn't transfer in share capital, it will attract any penalty or other liability from registrar of companies.

Regards,

lalit Kr Sharma

R.V.RAO

R.V.RAO (Expert)
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23 November 2007 section 205 c of the companies act says certain amounts like
-unpaid dividend,
matured deposits,
debentures matured and
share application money received by companies for allotment of shares and due for refund -
have to be transferred to investor education and protection fund established by central govt.
but hold on -only if the above amounts remained unclaimed and and unpaid for seven years from the date they became due for payment-then only we need to transfer to the above said fund.
so if the amount of share application money is claimed by the person who deposited the share application money (SAM),from the date of his claim, pl. count seven years and then only it is due for payment.
iam not saying to delay allotment of shares . For any reason if the allotment of shares did not happen,I SAY THERE IS A PROVISION FOR US IN SEC 205 C TO COMPLY.
I KNOW COMPANIES WHERE THE SAM IS LYING FOR YEARS. I WISH TO BRING TO SUCH COMPANIES ' NOTICE ,THE ABOVE LAW.
ROC DID QUESTION SEVERAL COMPANIES ON SCRUTINY OF B/S , WHY SAM IS STILL LYING.
SO IT IS BETTER TO ALLOTT SHARES EARLY AND AVOID RIGORS OF SEC. 205 C.
THE MINISTRY OF COMPANY LAW MAY BETTER BRING IN the COMPANIES ACT A COMPULSION TO ALLOT SHARES WITHIN A SPECIFIC PERIOD AFTER SAM IS RECEIVED.
R.V.RAO

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