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Share Application Money

1994 views 2 replies

Pavan Daga

business

125 Points Posted on 18 January 2010

I wanted to know is there any procedure for a Company accepting share application money?? is there any need for the resolution to be passed for receiving the share application money??

What is the timeline by which the share should be alloted against the application money received?

Can any unsecured loans of past year... in the balance sheet shown in current year as Share application money to modify the debt equity combination in the balance sheet?

Replies (2)

umesh vyas

B.Com. LL.B. A.C.S.

210 Points Posted on 19 January 2010

unsecured loan can not be shown as share capital except it is subscribed by new member on issue of fresh capital i.e. on conversion of loan into capital

raspreet kaur

job

55 Points Posted on 20 January 2010

No such procedure has been prescribed for acceptance of share application money except that money should be reflected in your Co's bank A/c. Furthermore there is no need of passing any resolution.

No time limit has been prescribed for conversion of application money into Share Capital.

If unsecured loan has been shown in your previous year's BS then i don't think that the same can be converted into share application money.

However kind views of other members are solicited.