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What are the provisions of time for issue of certificate?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 asked

Hi I am CA student. I want to know, What are the provisions of time for issue of certificate?

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Every company, unless prohibited by law or of any order of any court, tribunal or other authority, shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in Section 53of Companies Act, 1956, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred.

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--As per Section 46 (issue of share certificates) and sub-section (4) of section 56 (relating transfer and transmission of securities) read with Rule 5 of Companies (Share capital and debentures) Rules, 2014. **Time period of issue a share certificate (Section 56 (2))** Subscriber to the memorandum :- 2 months from the date of incorporation Allotment of any of its share:- 2 months from the date of allotment Transfer or Transmission of share:- 1 month from the date of receipt of the instrument Allotment of debenture :- 6 months from the date of allotment Penalty: Company: – 25,000 Rs but which may extend to 5,00,000 Rs Officer :- 10,000 Rs but which may extend to 1,00,000 Rs

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> Issue of Share Certificate and related Provisions * *Issue of Share Certificate** ----------------------------- **Applicable Provisions**: Section 46 (issue of share certificates) and sub-section (4) of section 56 (relating transfer and transmission of securities) read with Rule 5 of Companies (Share capital and debentures) Rules, 2014. Time period of issue a share certificate (Section 56 (2)) Subscriber to the memorandum :- 2 months from the date of incorporation Allotment of any of its share:- 2 months from the date of allotment Transfer or Transmission of share:- 1 month from the date of receipt of the instrument Allotment of debenture :- 6 months from the date of allotment **Penalty:** Company: – 25,000 Rs but which may extend to 5,00,000 Rs Officer :- 10,000 Rs but which may extend to 1,00,000 Rs **TIME LIMIT FOR SHARE ALLOTMENT -FEMA & COMPANIES ACT, 2013** As per FDI Regulations read with FEMA, share must be allotted against share application money received from non-resident within 180 days of its receipt. Whereas, as per section 42(6) of Companies Act, 2013, if Company has received any amount received for the purpose of allotment of shares on Private placement basis then shares must be allotted within 60 days of receiving share application money for the same otherwise Company shall refund the whole money within 15 days. Further, as per Rules 2(c)(vii) of Companies (Acceptance of Deposits) Rules, 2014, any amount has been received for the purpose of subscription of shares and shares is not allotted within 60 days of its receipt then same shall be refunded within 15 days from the expiry of 60 days otherwise same shall be treated as Deposits. In contrary, sub clause (ii) of same Rules 2(c) of Companies (Acceptance of Deposits) Rules, 2014, states that amount received from foreign Body Corporate or citizens in compliance of FEMA , shall not be treated as Deposits. So, in the absence of any overriding provisions between Companies Act, 2013 and FEMA, the stricter provisions of Companies shall prevail and consequently, amount received from non-resident as share application money must be allotted within 60 days.

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Open uri20170510 32134 1uwcnoc?1494421631 answered

Every company, unless prohibited by law or of any order of any court, tribunal or other authority, shall, within three months after the allotment of any of its shares, debentures or debenture stock, and within two months after the application for the registration of the transfer of any such shares, debentures or debenture stock, deliver, in accordance with the procedure laid down in Section 53of Companies Act, 1956, the certificates of all shares, debentures and certificates of debenture stocks allotted or transferred. Although Section 154 of Companies Act permits a company to suspend registration for a period of one month at a time, this does not mean that the company is prohibited from issuing share certificated during this period.

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