Share capital in arrear at the time of incorporation

This query is : Resolved

Harish Chandra (Querist)
Follow

16 April 2012 Share Capital in Arrear at the time of incorporation

Two person incorporate a Pvt company and take 5000 share each of rs. 10 each, total Rs. 100000, When Filing MOA and AOA , Rs. 100000 is in arrear( unpaid to both the director), can ROC can issue Incorporation certificate if share capital is unpaid,

If it is allowed what will be accounting treatment in books of account of Fresh incorporated company

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 April 2012 Hi

In accordance with the provisions of section 36(2) of the Companies Act, 1956, all money payable by any member to the company under the memorandum or articles shall be debt due from him to the company.

Further, a subscriber to the memorandum must pay for his shares in cash, even if the promoters have promised him the shares for services rendered in connection with the promotion of the company.

When a person signs a memorandum for any number of shares he becomes absolutely bound to take those shares and no delay will relieve him from that liability unless he fulfills the obligation.

Regards

Harish Chandra

Harish Chandra (Querist)
Follow

16 April 2012 What is the meaning of unless he fullfills the obligation. Is there any time limit for arrer amt realisation in cash.

Ajay Mishra

Ajay Mishra (Expert)
Follow

16 April 2012 Hi

No time limit, until he pay it will be treated as debt.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Leena Rachh

Govind Mundada

svgovindaraju

venkanna setty

YARRAMREDDY M

Subscribe Now

Share capital in arrear at the time of incorporation

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA