Subscription of share

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CA. Iti Arora (Querist)
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10 January 2012 Is it necessary for the subscribers of Memorandum of Association to apply for the shares and take the shares?
Is it mandatory for the company to allot shares firstly to such subscribers?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
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10 January 2012 Subscribers of MOA are deemed shareholders of the company. They have agreed to take the shares in the company in the number written in the memorandum. They don't required to apply for the shares.

The company must allot the shares to the subscriber first.

Jiten Gupta

Jiten Gupta (Expert)
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10 January 2012 If company desires then u can make the allotment to others though it is first allotment after incorporation.

Jiten Gupta

Jiten Gupta (Expert)
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10 January 2012 read section 81 and 81(1A) for more clarification.

Guest

Guest (Expert)

10 January 2012 Yes Iti, subscriber are necessarily required to take shares.

Yes, Its mandatory for company to allot shares to subscribers first.

Jiten Gupta

Jiten Gupta (Expert)
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11 January 2012 As per my view

Subscribers have already taken the shares subscribed by them during incorporation.

Now the question relates to First Allotment after incorporation, And here Subscribers do not need to apply and take shares compulsorily, company if so desires can allot the shares to others.

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