Share Application Money

There is no specific provision in the Companies Act as to share application money. However, by virtue of section 75 share application money may be received in cash or in kind. When shares are alloted for a consideration other than cash, we need to file form 3 also alongwith form 2 in case when no agreement to this effect has been executed in writing. If an agreement has been executed for allotment of shares in kind only return of allotment in form 2 is filed with roc.