Compliance certificate

Hi,

 Suppose a company's balance sheet reflects that there is share application money pending allotment.
 
 
As we know that any subscripttion received by a company against issue of share capital can be regarded as “subscribed share capital” only when the share capital is actually subscribed and allotted as well.
 
 
So will it be correct to provide under point no 13 of the compliance certificate (issued u/s 383A)   that “the Company has not issued any equity shares during the financial year.”         
 
 
Replies (6)

Yes you are right...you can say the company has not issued equity shares.........

rgds

Agree with Vivek. There is no doubt at all.

No formal allotment ==No issue of equity shares.

Company has recieved the share application money & didn't allotted the shares.


and Point no. 13 says about te allotments made during the year.

As company has recieved the share application money, it can not be considered as allotment.

When company in future allotes money, then the point no. 13 will be applicable.

ya its perfectly right as wen u made actully allotment only den u have to considered it in point 13 and there is only application money and not an actual allotment.

so no need of mention it and it is written dat there is no allotment of shares during the year.

ya its perfectly right as wen u made actully allotment only den u have to considered it in point 13 and there is only application money and not an actual allotment.

so no need of mention it and it is written dat there is no allotment of shares during the year.

Agree with Ankur Sir, Point no. 13 will only be applicable if there is any allotment made by the company during the year.

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