Seperate bank acc for share application money

Dear All 

As per the requirement of Companies Act, seperate bank account is required for recieving share application money and further such amount should not be used other than for adjustment against allotment of securities and for the repayment of monies where the company is unable to allot shares.

Now, if the entire amount is alloted, whether same amount can be used for meeting expenses in the hand of the company or does it need to be transferred to different account for making payments for various expenditures.

 

Replies (1)

Once the allotment is done, you can issue cheques for various payments from same account itself.

 

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