Share allotment

Dear All,

As per sec 42 of the Companies Act, 2013 the amount recieved as share application money should be allotted within 60 or else should be refunded within next 15 days. else interest @ 12 % is applicable from 60th day.

In case of my company, which is unlisted public company, has recieved share application and is pending for lasr 80 days. Can I now allot shares now after paying the required interest.

If yes, then pls let  me know the procedure.

Thanks 

 

 

Replies (1)

Sec.42 has been made effective only on 1.4.2014, i.e. before you got share application money in your case.  Hence you can make the allotment now after following the procedure laid down in Companies (Prospectus & Allotment of Securities) Rules 2014.

 

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