Dear All
A private company has taken share application money in january 2014 but not yet allotted the shares. The CA 1956 was silent on time period within which allotment was to be made. My query is that now that section 42 of the CA 2012 has been made applicable from 01.04.2014 and if the company does not allot the shares before 31.03.2014 then what will be the consequences. Will the company be required to allot the shares before 30.05.2014 or it can allot when it deems fit.
The relevant date being the date from share application money has been received. In case of failure to allot, the refund has to be made within 60 days from the receipt of application money, if not penal interest @ 12% pa is applicable (Note, any penalty, IT deduction not available).
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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