share application money

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hussain

hussain (Querist)
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03 September 2009 share application money can be received in cash please answer th query

Ankur Garg

Ankur Garg (Expert)
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03 September 2009 Hi,

There are no specific provisions regarding share application money in law. So it is advisable to collect share application money through cheque only.

Regards

Ankur Garg

Ankur Garg (Expert)
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03 September 2009 After accepting 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.

Best Regards

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