share application money
This query is : Resolved
04 September 2009
sir,
can we receive share application money from companys staffs in private limited company
can we receive share application money from companys staffs in private limited company
Ankur Garg
(Expert)
04 September 2009
Yes u can receive share application money from any body.
But untill allotment of share such person shall not be considered as member of the company.
Regards
But untill allotment of share such person shall not be considered as member of the company.
Regards
Ankur Garg
(Expert)
04 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
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
CS Vivek Hegde
(Expert)
05 September 2009
Dear Mr. Ankur Garg
The time lag of 6 months is applicable only if the money received is FDI. Bcz FEMA requires allotment to be done within 180 days. In all other cases there is no such practice which is being followed.
rgds
The time lag of 6 months is applicable only if the money received is FDI. Bcz FEMA requires allotment to be done within 180 days. In all other cases there is no such practice which is being followed.
rgds
Ankur Garg
(Expert)
07 September 2009
Thanks Vivek Ji for sharing.
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