Question

Private company can allot shares without receiving minimum subscription.

• A. Yes
• B. No
• C. Unknown
• D. None of the above

Answer 1

The correct option is B No

As per section 39 of the Companies Act, 2013, No allotment of any securities of a company offered to the public for subscription shall be made unless the amount stated in the prospectus as the minimum amount has been subscribed and the sums payable on application for the amount so stated have been paid to and received by the company by cheque or other instrument.