Sir, One of our known company has issued the share capital I. e., collected the amount from the public but not allotted the shares to them. Please explain me the procedure regarding late allotment of shares and interest rates applied and if they want to reimburse the amount and if allotment could be made.
Within 60 days from the date of receipt of money Company shall allot shares to the shareholder otherwise company shall refund the all money to shareholders within 15 days after expiry of aforesaid period (i.e. 60 days) if company fails to refund such amount it will be deemed as DEPOSIT as per rule 2(1)(c) of deposit rules 2014 and company shall pay interest @ 12% per annum
Sorry, Sir please ignore my inconvenience caused to u. Please explain me as per Companies Act, 1956 I. e., old provisions because the company had failed to allot the amount since 8 years.
CAclubindia
