Form 5 INV query

Dear Yogesh,

1. Company had accepted applications for issue of shares through private placement.

2. The company is bound either to allot and issue hares  within three months from the date of allotment or to refund the amount.

3. And accept deposits from them.

Originally posted by : UMA DEVI
	Dear Yogesh, 1. Company had accepted applications for issue of shares through private placement. 2. The company is bound either to allot and issue hares  within three months from the date of allotment or to refund the amount. 3. And accept deposits from them.

Hi,

Sorry, but I didn't get what you wanna say.

Yes, Company HAD accepted applications but thereafter Company didn't issue shares to them. Now, Company wants to convert that amount in unsecured loans. Even shareholders don't have any problem with this. Actually, all shareholders are known to each other and belongs to same friend / social circle.

Kindly let me know if you have any further saying and haa.. thanks for the earlier reply

Dear Yogesh,

If the company had allotted shares by a board resolution it would be default of the company for not issuing share certificates under sec.113.

In case the company did not allot shares then follow the procedure:

a. take letters from the applicants to convert share application money to deposit.

b. pass board resolution authorising the company to accept their proposal.

c. convert the share application amount into deposits

d. issue deposit certificates to depositors