Share application money pending allotment

This query is : Resolved

Manoj Kumar Thirumalasetty (Querist)
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11 August 2016 Is there any time limit for allotment of share application money received by PRIVATE LIMITED Company as per Companies ACT 2013.Also whether that money can be utilised by the company for other purposes.

Pls reply

Thanks in advance

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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12 August 2016 1. Sixty days from the date of receipt of the application money for such securities and if the company is not able to allot the securities within that period, it shall repay the application money to the subscribers within fifteen days from the date of completion of sixty days .

2. Application money can't be used for other purposes.

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