Share capital in arrear at the time of incorporation
This query is : Resolved
Harish Chandra
(Querist)
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
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
(Expert)
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
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
(Querist)
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
(Expert)
16 April 2012
Hi
No time limit, until he pay it will be treated as debt.
No time limit, until he pay it will be treated as debt.
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