Question ID : 665

SHARE APPLICATION MONEY CASH COMPANY LAW

Dear Members

There is a recent jharkhand high court judgement that share application money cannot be received cash as 269 applies to it.

But as per companies act , a compnay has to have 1,00000 paid up capital on day of formation.

How is it possible to have a bank a,c etc on same day for a company. Obviously book entries need to be cash!

Can any one crify how we can satisfy both the Acts

Regards
Raghu '

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