companies act
Prashant
(Querist) 27 July 2009
This query is : Resolved
1.A Ltd was formed in Jan-08 but till today no certificate of commencement of business is obtained.
2.The subscribers to the MOA & AOA are 10 members out of that one is listed ltd company named as X Ltd.
3.X Ltd is subscribed for 99% of A ltd
4. But till today none of them has paid share capital.
Following queries are raised-
1. X Ltd has not paid a single rupee towards the share capital of A Ltd. Still will A Ltd be treated as subsidiary of X Ltd for the year 2007-08 & 2008-09 merely because it is a subscriber to MOA & AOA. Further A Ltd has not yet obtained certificate of commencement of business. So in that event can it receive the share capital, can it open a bank account.
2. Can A Ltd ,subscriber to MOA & AOA refuse to pay share capital to A Ltd if yes then what is the remedy available to A Ltd for getting share capital.Can it receive from any one else.
Thanks in advance
s.subramanian
(Expert) 24 August 2010
No,it cannot receive share money since there is no certificate of commencement of business.
