Share Application Money

Till such time shares are allotted it shal be shown under loans and advances only.

Thanks a lot

Regards

Mihir Tatran

In an unlisted public company, the co. has taken share application money without increasing authorised capital since 11.10.2007. The following are the queries:

1. Should the co. increase its Authorised capital first in 11.10.2007 or it can increase the same in 31.03.2008 ? 

2. What are the legal formalities that the co. shall comply?

3. Whether Unlisted Public Companies (Preferential Allotment) Rules, 2003 shall be followed ?

4. Whether the co. will refund the share application money because no Special Resolution/ shareholders approval has been taken ?

5. What are the provisions applicable as per IT ACt/Laws, Company Laws & any other laws dor the time being?

You are requested to answer the above said queries ?

I need this information urgently.

Thanks & regards,

R.K. Sahoo

Should the company pay any interest for the period when the share application money was retained with allotting the shares?

Treat as Share Holders fund

sir,

this is Rama chandrudu ca inter student i have one doubt regarding share application money one pvt ltd company having authorised share capital 100000 and issued and paid capital of Rs.100000 @ 10 each but where as share application money received from foregien of Rs. 11800000 , the question is the same amount where i show in balance sheet and what is the treatment of the share application money please kindly give me reply

               thanking you sir,

please give me reply

regards

Rama chandrudu

First the in order to allot the shares, the Company has to increase the its authorised share capital. Further till the time authorised share capital is increased it has to be shown as share application money pending allotment under equity head.

It depends upon the agreement between the company and the person from whom the share app. money has been take. As per Company Law thr is no binding on the same.

regards

Ankit Sinha

Whether company can transfer share application money to Capital Reserve in a case were the party from which the amount was received was foreign company and that company has gone under liquidation and the name of the company is strucked from the records of the company registrar and certificate is issued in that respect by the registrar of that country? 

Hi :Ðashrath

I am also facing the same type of problem in Pvt Ltd Co.

Can you provide any referance case law or any finding in Company Law.

Regards

Peeyush Jain

my query is -  a pvt ltd co. having authorised capital of rs.100000 and paid up capital also rs.100000, can have share application money of RS.6600000 withour increasing authorised capital? here there is no intention to allot shares against share application money.it is just an internal adjustment which the company wants to make in the balance sheet.

Pls guide me. Can a listed company in their Annual General Meeting give the cash as Conveyance to its Share holders.  does it form the part of Gifts.

I require guidance on this issue urgently. 

Dear Sir,

Whether Share application money to be treated as unsecured loan ? Later it can be converted into Share capital? Kindly clear this issue.

Can share application money be treated as part of paid-up capital for inviting deposits, in case of listed company.

In my opinion, Share application money should not be considered as paid-up capital.

Please clarify

Regards

Sharada