suppose company has taken a unsecured loan and instead of paying back the loan the company adjusted such loan with share application money through book entry. my question is whether it is right to do it.
Menu
Share application money
Replies (2)
No. this is voilation of company Act 1956 . Bcoz the share application amount received by company before the allotment have to deposit into Specific Account and company can withdraw this amount only receipt of minimum subscripttion that is 90% of issued share application amount so Co. can not use the share application amount to set off the loan taken from bank
Agree with VEERU SAGAR .......
Good Explanation too...
Recent Topic
- My client missed to file ITR 3 for AY 25-26
- Subscription/Membership fees
- Inverted tax gst refund
- Mismatch of pincode and district while registering
- Total income less than 12 lakhs but after processi
- Is Getsvision Solutions right for SMTP bulk email
- Queries on Stock/ETF gifting.
- Adding bank account for the deceased for ITR refun
- SALE OF EQUITY ON THE LAST DAY OF THE FY 2024-25 N
- Which ITR form
Related Topics
CAclubindia
