Allotment of shares

630 views 2 replies

1. Presently, a Pvt. Company has ‘Share Application Money’ (which is pending for allotment since last 1 year). Will there be any legal hassle in continuing the same till end of current financial year?

2. The above Pvt. Company intends to invite further ‘Share Application Money’ from 20 individuals. As per Companies Act, 2013, it has to follow provisions of Sec. 62 (further issue of share capital) as well as of Sec. 42 (private placement). Would appreciate, if anybody can share ‘Checklist’ for the detailed procedure to be followed by the Company for issue and allotment of shares.

 

Replies (2)
Hi Raja, To answer your first question, After the commencement of CA 2013, section 42 states that any share application money received should be utilised (i.e. shares to be alloted) within 60 days of receipt.....if not then it should be refunded within 15 days......if not refunded within that period, then interest to be paid... SEcondly the deposits rules further state that such money will be treated as deposits if not refunded within the time period.....Then you ll have to comply with another set of procedures..... So share application money standing in accounts as on 1/4/14 should have been allotted within end of May 14 or refunded within 15 days...

thanks vandana for your reply,

But can any one provide be the detailed procedure for allotment of shares in a private limited company as per companies act, 2013?

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Related Topics
Loading
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details