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Allotment of shares to nri

Co Act 2013 731 views 1 replies

prakash

Company Secretary

1352 Points Joined January 2012

Dear All,

Private limited company received FDI for allotment shares on 1st Janury, 2014, as per FEMA Regulation, we have time to allot shares upto 30th june, 2014 but as per Companies Act,2013 even private limited companies has to allot shares within 60 days of receipt of share application money, under this circumstances, do our company voileting provision of Companies Act,2013.

Replies (1)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

For share application money already received we can take a view that the time limit of 60 days will apply from the date of comming into effect of the Act, i.e. 1.4.2014. You should therefore in any case make allotment by 31.5.2014.