Share Application Money
This query is : Resolved
25 January 2010
Dear All,
Please tell me,
for how much time a pvt. ltd. company can hold the share applicatin money,
is there any ristriction on the number of share application.
thanks
Please tell me,
for how much time a pvt. ltd. company can hold the share applicatin money,
is there any ristriction on the number of share application.
thanks
Ankur Garg
(Expert)
25 January 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
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
CA Rajesh Soni
(Expert)
25 January 2010
yes i agree
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