Acceptance of Share Application money

deepak (Querist) 02 July 2009 This query is : Resolved
Dear Sirs,

A Company's issued capital is equal to its authorized capital.

Whether a company can accept further any share application money in this situation. (the company has not issued any shares but only accepted the share application money)

if yes, to what extant.

if no why?

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A V Vishal (Expert) 02 July 2009
Dear Deepak

What type of company is it i.e is it a Private ltd co or a Public ltd co and whether is it listed / unlisted in case of a public limited co.

Nehal (Expert) 07 July 2009
Irrespective of a Company being public or private limited, the company cannot issue any shares beyond the authorised capital and without issuing shares, the Company cannot accept share application money. Therefore, the company cannot accept share application money beyond the outstanding authorised capital limit.

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