X ltd. invited general public to subscribe for its public issue of Rs. 10 Crore (10lack share of 100 each) Through issue of prospecter, however the company recieved applications for 8Lack shares. Can the company proceed with the allotment of share? Give reasons in support of your answers.
Answers
Explanation:
a Ltd.was issued certificate of incorporation by the registrar on 10th February 2018 power the date mentioned on the certificate was 1st February 2018 the company entered into a contract for purchase of land with B Ltd on 5th February 2018 now be Ltd is not interested to sell the lack as it is getting the higher price from another buyer can a Ltd file case against B Ltd give reasons in support of your answer
Explanation:
Solution :
No , X Ltd., cannot proceed with allotment of shares as minimum subscription has not been received . <br> In order to prevent companies from commencing business with inadequate resources , it is provided that a company must receive the amount of minimum subscription in cash within 120 days from the date of issue . <br> Minimum subscription is 90 per cent of the issued amount ( according to SEBI guidelines) . Otherwise , the allotment cannot be made and the application money received must be returned to the applicants within the next 10 days (i.e., 130 days from the date of issue ) .