How its Possible

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A company incorporated in sep 2008 with authorised capital of Rs 1,98,00,000 divided into 19,80,000 shares of rs 10 each. members subscribed for 10,00,000 shares in MoA. Now the balancesheet of company is showing paid up capital 99,00,000 divided into 9,90,000 shares.
is it possible that paid up capital can be less than the capital subscribed in MoA at the time of incorporation

Replies (7)

Hi

 

As per my understanging, no. of shares shown in MOA will be treated as paid up capital unless further allotment has not been made by company.

 

 

Regards

Originally posted by : Ajay Mishra

Hi

 

As per my understanging, no. of shares shown in MOA will be treated as paid up capital unless further allotment has not been made by company.

 

 

Regards
Originally posted by : Ajay Mishra

Hi

 

As per my understanging, no. of shares shown in MOA will be treated as paid up capital unless further allotment has not been made by company.

 

 

Regards

Rs. 1,00,000/- might be share application money which is not alloted yet !!

Dear Dileep



At the time of incorporation, the provisions of share application will not apply, because the company is not in existence.


Regards

 

Subscribed capital is basically the proceeds that the promoters/shareholders have “agreed” to pay for the shares. The subscribed capital transforms into paid-up capital when the shareholders actually make the cash payment that they agreed to pay. 

No, it is not correct.

 

In this case, the paid up capital in the balance sheet must be 1 Cr.divided into 10,00,000 shares.

 

Because in MOA 10,00,000 shares are shown as subscribed. It is considered as deemed allotment. No further formal allotment in this regard is required.

 

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