Is there any minimum amount of share application money which has to be paid under the Companies Act, 1956 for allotment of shares?
Eg. 5%
Does the Board have the discretion subject to the Articles of Association to decide the application money to be called up on application?
Thanks in advance
Regards
Dipali Shinde
Hi Dipali,
Nothing is mentioned in Law as far as minimum application money concerned. However as per my understanding board is free to prescribe a reasonable minimum sum of application money through AOA.
Regards
Naveen Fintech Pvt Ltd
Kolkata
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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