In case of incorporation of pvt ltd company, initial share are alloted to subscriber to memorandom at the time of incorporation. Once the incorporation done, subscriber to memorandom will deposit share capital money to bank account. There is no need of filing form 2.
I know aforesaid statement is correct, but can somebosy quote relevant sections or rules of company Act?
Your early reply appreciated.
Thanks
Kamal Kr
Hi
A person subscribing to the Memorandum shall become a member of the company on its incorporation and remains so till the company accepts his surrender of shares or he transfers shares. { U.P. Oil Mills Co. Ltd. In re (1931) }.
A subscriber to the MOA is deemed to have agreed to become a shareholders, even if he submit no application and no allotment of shares is made to him. { Collector of Moradabad v. Equity Insurence Co. Ltd. (1948) }
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