In one of our Company there is a Subscripttion of Foreign Holding Company. The MOA subscripttion money is received on 18th October 2019 from foreign Company.
Can I issue the share certificates before subscripttion money is received??
As I understand that Companies act mandates the issue of Share certificates with in 60 days from the date of Incorporation but is silent on the receipt of Intial MOA subscripttion money to be received within 60 days and then only share certificates can be issued.
As per act I understand that it should be with 180days to file the declaration of commencement.
But then my query is for Share certificates what is to be done??
As per the provisions of the Companies Act 2013, shares shall be allotted within 60 days of receipt of application money and if the shares are not allotted within 60 days of receipt of application money, all the entire application money shall be refunded to the applicant and the interest shall be charged on retrospective basis.Share certificate shall be issued within 60 days of allotment of shares and the stamp duty shall be paid within 30 days of the issue of share certificate.
Further in case of incorporation of the Company, share certificate shall be issued within 60 days from date of incorporation of Company.
Company has to file the declaration within period of 180 days that the subscriber to whom the share has been allotted has paid the full amount to the shares
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