Dear Members,
Company formed. A, B & C held 1000 shares in a Pvt Ltd Company. Now after incorporation C refuses to deposit the subscripttion money into the bank. Now what will be the accounting treatment for unpaid share capital.
Is there any capital reduction impact on paid up share capital?
Can we file the form INC-20A commencement without unpaid shares?
Thank You in advance.
it will be considered as breach of contract by the subscriber and may attract civil action for this As per section 10(2) of the Companies Act, 2013, all monies payable by any member to the company under the memorandum and articles is a debt due from subscriber to the company, therefore the subscriber cannot refuse to pay the subscripttion money, once the Memorandum is registered
Section 10A also prescribes heavy penalties if subscribers to the Memorandum don’t pay the subscripttion money within 180 days from the date of incorporation, or the officer in charge doesn’t file the return.
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