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Increase in authorised & paid up capital
Private limited co. with a authorised and paid up capital of Rs. 1 lakh now wish to increase the authorised capital to Rs. 50 lakhs and Paid up capital to Rs. 35 Lakh.
Do we have have to open an escrow account to receive the incremental share capital amount.
Replies (4)
In case of private placement, company will have to open a separate Bank Account for receiving the share application money and will not able to utilize the same unless shares are allotted.
We will be doing an right issue and not private placement. So we don't need to open an escrow account right. Please confirm. Thanks in advance.
yes,no need to open seprate bank a/c in case of right issue.
According to my understanding such condition is not given under section 62 of the act.
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