Subscribers to MOA

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 August 2010 Hi,

The subscribers to MOA should bring in the money ie capital within how many days. Which section should I refer to?

Pl help

Rasesh

Rasesh (Expert)
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30 August 2010 There is no time lime prescribed in law. However, as a matter of good practice the money should be brought in before filing the SLP.

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Ankur Garg

Ankur Garg (Expert)
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30 August 2010 Hi,

Subscribers of MOA are deemed shareholders of the company. They don't need to take shares. As soon as they subscribe the MOA & file it with ROC along with other incorporation documents they become the members as well as shareholders of the company. Appreciate further have you ever filed form-2 for the subscribers? The answer would be No. That itself is a kind of proof that no allotment is required to be made to the subscribers.

Form-2 is not required to be filed for subscribers hence no formal allotment is required in case of subscribers. They are deemed members and shareholders of the Company.

Regarding receipt of payment from subscribers I would say ideally such amount should be deposited by the subscribers after incorporation of the co. in the newly opened bank a/c of the company and record the same in the first BM Minutes.

Alternatively, as there is no tracing (as far as ROC is concerned) of such amount, it may be deposited by them later. As a CS i would suggested you should opt I option to avoid any kind of future problem.

Best Regards

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Rasesh

Rasesh (Expert)
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30 August 2010 Agree with Ankur.

I had co-related it with the SLP for for the following reason. The SLP is filed at the time of obtaining certificate of commencement of business. So before the company gets certificate of commencement of business, the subscription money should be deposited by the subscribers to the memorandum.

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