Share Capital
This query is : Resolved
16 May 2008
Sir
In one of the companies which we have audited we have face a one problem.when we added the shere application money and paid up capital the sum of both exceeds the Authorized capital.Sir please explian me is it happens in any other companies? is there any statutory compailance for that? if it is possible please give me a supported case law.
In one of the companies which we have audited we have face a one problem.when we added the shere application money and paid up capital the sum of both exceeds the Authorized capital.Sir please explian me is it happens in any other companies? is there any statutory compailance for that? if it is possible please give me a supported case law.
16 May 2008
in my opinion, there is no problem at present, but you can't allot shares to applicants beyond authorised share capital. so, you will need to increase the authorised capital.
16 May 2008
Yes what Mr.Yayati has stated is correct
17 May 2008
THE DIFFERENCE BETWEEN PAID UP CAPITAL AND SHARE APPLICATION MONEY IS THAT SHARE APPL. MONEY CAN BE REPAID BY A COMPANY WITHOUT ANY STATUTORY COMPLIANCES, WHILE PAID UP CAPITAL CANNOT BE REDUCED WITHOUT COURT APPROVAL.
WHEN WE ARE NOT SURE AS TO WHEN SHARE APLL. MONEY WILL BE BE PAID BACK(OR AT WHAT POINT OF TIME WE WILL ALLOT SHARES AGAINST THE SAME),HOW CAN WE CONSIDER IT AS PART OF PAID UP?
I FEEL ,IT IS NOT A LOGICAL STEP TO ADD TOGETHER TWO NUMERICALS ,WHEN ONE OF WHICH(SHARE APPL. MONEY) IS NOT SURE TO BE CONVERTED INTO PAID UP SHARE CAPITAL.
THERE IS NOTHING TO WORRY AS LONG AS THE PAID UP DOES NOT EXCEED THE AUTH. SHARE CAPITAL.
AS AND WHEN YOU NEED TO ALLOT NEW SHARES (WHICH INCREASES THE PAID UP CAPITAL,PL. ENSURE THAT THE FRESH INCREASE IN PAID UP PLUS THE PRESENT PAID UP TOGETHER DOES NOT EXCEED THE TOTAL AUTH .SHARE CAPITAL.
R.V.RAO
WHEN WE ARE NOT SURE AS TO WHEN SHARE APLL. MONEY WILL BE BE PAID BACK(OR AT WHAT POINT OF TIME WE WILL ALLOT SHARES AGAINST THE SAME),HOW CAN WE CONSIDER IT AS PART OF PAID UP?
I FEEL ,IT IS NOT A LOGICAL STEP TO ADD TOGETHER TWO NUMERICALS ,WHEN ONE OF WHICH(SHARE APPL. MONEY) IS NOT SURE TO BE CONVERTED INTO PAID UP SHARE CAPITAL.
THERE IS NOTHING TO WORRY AS LONG AS THE PAID UP DOES NOT EXCEED THE AUTH. SHARE CAPITAL.
AS AND WHEN YOU NEED TO ALLOT NEW SHARES (WHICH INCREASES THE PAID UP CAPITAL,PL. ENSURE THAT THE FRESH INCREASE IN PAID UP PLUS THE PRESENT PAID UP TOGETHER DOES NOT EXCEED THE TOTAL AUTH .SHARE CAPITAL.
R.V.RAO
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Itr 1 processing
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- Share accounting-->fifo - capital gain - period as per fifo?
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
