Can agreed paid up amount NOT deposit into company account ?
Client situation
To tender a project, especially one related to social responsibility such as a playground or hawker centre, your company’s financial status must be strong and it can significantly enhance your bid.
Mr. Ravi’s company needed to increase its share capital to $1 million, requiring an additional $500,000 in new paid-up capital. To secure the opportunities, a resolution was passed, and the company secretary lodged it with ACRA.
A recent business profile shows the number of shares and paid-up capital is up to 1 million. He used this to tender for a project and was successful.
During the process, the project encountered issues, and the company was unable to provide a solution or bear the penalties.
At the end, company been caught because failing to deposit $500,000 into Company bank account .
Company director was fined.
It is an offence under section 401(2A)(a) to lodge any document with ACRA knowing that document to be false or misleading in a material aspect .