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Can subscribed capital be more than that of authorized capital

manohara (student) (82 Points)

27 June 2011  

Hi Friends 

let me know whether subscribed capital can be more than authorized capital.

the subscribed capital is collected 4 months before and that is not alloted.


 3 Replies

Jaideep (Service) (1363 Points)
Replied 28 June 2011

Subscribed capital can not be more than Authorised capital, having share application money is different thing if we segrigate it as subscribed capital then it tantamounts to allotment without having authorised capital.



Jaideep Pandya

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 28 June 2011

hi manohara,

Subscribed capital cannot be more than the Authorised capital at all. Authorised capital is the maximum amount which a company can raise. if it wantsto raise capital beyond the limit set by the authorised capital then it has to alter the Subscripttioon Clause of MOA and raise the Authorised capital.

Regards Shivi

Pravin Gupta CS (trainee) (789 Points)
Replied 28 June 2011

share application money can be helf upto 12 month..(in case of foreign application money share should be alloted within 6 mnth from the date opf receiving application money as per fema requirement...  so however subscribed capital of the company is laways less than from authorised captal.. it never be beyond the authorised capital...

Authorised Capital >  Issued Capital > Subscribed Capital > Paidupcapital

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