Share capital adjustment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2012 A pvt ltd company formed with 1lac share capital.

During formation both the directors subscribed for 50000/- each.

Now two new directors introduced. Compnay has no intention of raising authorized share capital so as to avoid fees.

1) How new directors on joining contribute capital otherwise?

2) Within wat time authorized capital to be subsribed in case of Pvt ltd co. & in case of ltd Co. ?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

21 June 2012 1) To avoid raising share capital you may take loan or accept deposit from the directors but then these amounts will have an priority for repayment over the directors holding shares.

2) Question no 2 is not quite clear,...There is not time limit regarding raising of authorized share capital.

You have stated that the company was formed with share capital of Rs 1 lacs. This is paid up capital so please also check the amount of authorized capital as the same may be more than Rs 1 lac. If this be the case you will not have to raise the authorised share capital. Further for capital infusion apart from raising the the authorised share capital you will have to make allotment of shares and file form 2 with ROC. But before that check your Authorized share capital and also evaluate the option of deposit or loan.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now