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
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 |
|
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.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
