Share application money pending for allotment
This query is : Resolved
22 February 2014
Sir,
The Company (Private) has share application money pending for allotment for more than 7 year. It authorized capital as on 31st march 2013 was 5 lac. which was increased to 25 lac on June 2013. The application money pending for allotment is 9 , 82,000 as per balance sheet of 31.3. 2013.
1. Whether the filing of form 5 INV is compulsory for private company.
2. or Company can do allotment in back date after June 2013 and can get safeguard from above notice .
3. As per section 205 C, the amount which is to be transferred to Fund is: Unpaid application money received from companies for allotment of securities and due for refund. But in above case the amount is due for allotment and not for refund.
Kindly resolve my query.
The Company (Private) has share application money pending for allotment for more than 7 year. It authorized capital as on 31st march 2013 was 5 lac. which was increased to 25 lac on June 2013. The application money pending for allotment is 9 , 82,000 as per balance sheet of 31.3. 2013.
1. Whether the filing of form 5 INV is compulsory for private company.
2. or Company can do allotment in back date after June 2013 and can get safeguard from above notice .
3. As per section 205 C, the amount which is to be transferred to Fund is: Unpaid application money received from companies for allotment of securities and due for refund. But in above case the amount is due for allotment and not for refund.
Kindly resolve my query.
22 February 2014
1. Form 5 INV applies to pvt ltd company.
2. Shares can't be issued post March, 2013 since as on that date application money is pending for more than 7 years. Pre March ,2013 is also not possible because authorised capital can't be increased pre March, 2013 if form 23 , form 5 etc of the increase of June,2013 is filed and approved by MCA.
3. Your observation is wrong. 1st proviso to section 205C applies meaning thereby money has to be transferred to IPEF otherwise penal action will follow.
2. Shares can't be issued post March, 2013 since as on that date application money is pending for more than 7 years. Pre March ,2013 is also not possible because authorised capital can't be increased pre March, 2013 if form 23 , form 5 etc of the increase of June,2013 is filed and approved by MCA.
3. Your observation is wrong. 1st proviso to section 205C applies meaning thereby money has to be transferred to IPEF otherwise penal action will follow.
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22 February 2014
Sir,
kindly explain in detail why my third point is wrong. what does it mean under section 205C :
Unpaid application money received from companies for allotment and due for refund
please clarify.
further is there any time within which the private company is required to make allotment of shares or else whether it is compulsory to transfer aplication money pending to allotment to IEPF account.
kindly explain in detail why my third point is wrong. what does it mean under section 205C :
Unpaid application money received from companies for allotment and due for refund
please clarify.
further is there any time within which the private company is required to make allotment of shares or else whether it is compulsory to transfer aplication money pending to allotment to IEPF account.
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