Saturday, February 11, 2023

Section 42 Private Placement Application Money and its utlisation

 

Private Placement  Section 42 (6)  -  Application money and its utilisation

1)  After making offer allot its securities within sixty days from the date of receipt of the application money

2)  in case not able to allot  the securities  within that period,  repay within 15 days from the expiry of  sixty days

3) Failure to repay the application money within the aforesaid period,  it shall be liable to repay that money with interest at the rate of 12% from the expiry of sixtieth day

4)  After offer, the application money shall be kept in a separate bank account in a scheduled bank and shall not be utilised for any purpose

other than—

(a) for adjustment against allotment of securities; or

(b) for the repayment of monies where the company is unable to allot securities.

 

No comments:

Post a Comment

Admissibility of entries in the books of account

  The Bhartiya Sakshya Adhiniyam 2023 (Indian Evidence Act 2023) Section 28 deals with the admissibility of entries in the books of accoun...