Share application money pending allotment

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SAMARTH (Querist)
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11 November 2013 Whether there is any specified period for allotment of shares in case company has share application money pending allotment?
And what if, it is not alloted within the specified period, what are the furthur provisions?
Pl. help in the matter.

Thanx

Nikhil Kaushik

Nikhil Kaushik (Expert)
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12 November 2013 There is no limit. However, under revised schedule VI, you need to disclose, the terms and conditions including the number of shares proposed to be issued, the amount of premium, if any, and the period before which shares shall be allotted have to be disclosed. It has also to be disclosed whether the company has sufficient authorised capital to cover the share capital amount resulting from allotment of shares against share application money.

Further, the period for which the share application money has been pending beyond the stipulated period for allotment along with the reasons for delay should be disclosed.

If the share application money is received from abroad, the allotment has to be done within 6 months.

SAMARTH

SAMARTH (Querist)
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13 November 2013 Thank you very much gentleman

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 November 2013 you are welcome

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