Hi
Can anybody pls update me on whether a Listed Public company which has loans from directors outstanding, convert such loans into share application money and till what time it can hold such application money.
Thanks..
Hi
Can anybody pls update me on whether a Listed Public company which has loans from directors outstanding, convert such loans into share application money and till what time it can hold such application money.
Thanks..
Under present Companies Act 1956 there is no time limit for issue of shares from share application money. But , I think, the Companies Bill 2012 contains a stipulation in this respect. In case monies are from non residents, then shares are to be issued within 6 months or to be refunded.
But, please take care, that share application money appearing in BS for too long a time might invite queries from different authorities like statutory/tax auditor, AO during assessment.
Regards,
O P Bagla & Co LLP
New Delhi
CA Inter
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