Share premium
This query is : Resolved
07 January 2013
Hi all,
Can anyone let me know whether share premium collected can be cancelled/ returned to the shareholders as the company does not require the same??
If yes, whats is the procedure to do so...
Can anyone let me know whether share premium collected can be cancelled/ returned to the shareholders as the company does not require the same??
If yes, whats is the procedure to do so...
Ajay Mishra
(Expert)
07 January 2013
Hi
Yes, if you have not allotted the shares and no resolution has been passed for allorment, then you will refund the amount taken as share applications including premium.
Yes, if you have not allotted the shares and no resolution has been passed for allorment, then you will refund the amount taken as share applications including premium.
07 January 2013
Thanks a lot Mr Ajay. But we have already alloted the shares and filed the same in form 2 with the ROC. Is it possible to cancel the allotment.
Ajay Mishra
(Expert)
07 January 2013
Hi,
No, you have already made allotment and intimated the same with ROC, so you can not refund the share premium money. Such money can only be used as per section 78 of the Companies Act, 1956.
No, you have already made allotment and intimated the same with ROC, so you can not refund the share premium money. Such money can only be used as per section 78 of the Companies Act, 1956.
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