Utilisation of share application money under Rights Issue
This query is : Resolved
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11 April 2020
Can we utilise share application money before allotment of shares under Rights Issue?
Eswar Reddy S
(Expert)
17 April 2020
Earlier, under old Companies Act regime, many companies accepted share application money under private placement and utilized the same for the business purpose even without allotment of shares. ... Now, Section 42 of the Companies Act, 2013 puts prohibition over the said practic
Eswar Reddy S
(Expert)
17 April 2020
So share application money cannot be utilised before completion of allotment proceeding
14 June 2020
It is not allowed..........................
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