Depositing Funds higher than Share Capital in the bank

[TomG]

In a UAE Offshore company in the Memorandum of Association, it is mentioned 10,000 AED as the authorized capital value, but actually the owner have deposited to the company bank account 25,000 AED, which is 15,000 AED higher than the company MoA

Is this practice acceptable, or what should we do now?

 

[Fidget]

Depends. Could be a share premium involved, so the MoA would be correct to show the par value, but if they've been sold at higher than that, then it would be correct that there's a higher amount of cash received in the bank account. Or it could be money laundering or even just an error.

 

[TomG]

Depends. Could be a share premium involved, so the MoA would be correct to show the par value, but if they've been sold at higher than that, then it would be correct that there's a higher amount of cash received in the bank account. Or it could be money laundering or even just an error.

Thanks for the reply. In this case can we book the over paid value of 15,000 AED as a load received by the company under the liability section?

 

[Fidget]

You really have to find out what it is actually is before you put it anywhere. If need be, I would put it in a suspense account until such times that I was confident as to what it actually relates to.