Utilisation of application money

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4 Points Posted on 19 May 2020
A ltd. receive application money on 1st jan 2019 and utilises same immediately for business purpose .Is it permissible under companies act, 2013.
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On 19 May 2020 at 11:40 Report
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This discussion clarifies the permissibility of utilising application money received by a limited company. Generally, once share allotment is completed within 60 days of receipt and the relevant forms (like PAS-03) are filed, the company can use the funds for business purposes. This is permissible under the Companies Act, 2013, provided all initial compliance steps are met.

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Confidential
177 Points Posted on 19 May 2020
Not permissible
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On 19 May 2020 at 11:45
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Student cs professional
249 Points Posted on 19 May 2020

Once the company done all the compliance at the beginning like issuance of share certificate filing of relevant resolution. 

Conclusion company can utilise the money. 

This is based on my understanding. 

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On 19 May 2020 at 18:20
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Professional
1979 Points Posted on 28 May 2020
Allotment to be done within 60 days from date of receipt of application money and after filing PAS-03 within 15 days, company can utliIse it.
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On 28 May 2020 at 14:10

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