alleryStart learning →Share application money is excluded from deposits provided it is used how?
AApplied only to allotment
BHeld in a trust account
CLent out to promoters
DHeld for over a year
Answer & Solution
Correct answer: A. Applied only to allotment
Subscription money is not a deposit only while it is appropriated solely against the amount due on allotment of the securities applied for.
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Related questions
Where must a company inviting public deposits upload the circular?A deposit circular stays valid for how long after the financial year closes (at most)?Who signs the circular copy sent to the Registrar under Rule 4(5)?On whose authority and name must a deposit circular be issued?An eligible company's public deposit circular is issued in which form?A section 73(2) company can send its member circular by which mode?After issuing the circular, what may a company not reserve a right to do?Who alone is entitled to brokerage on deposits procured for a company?