As per new rules of Companies Bill 2013, rules about allotment of new shares has been changed. As per new rules, Share application money cannot be received in cash and has to be allotted within 60 days. Moreover, no of shareholders has been restricted to 200.
In case of sugar companies where no of shareholders are very large as they are farmers. in some cases, it goes more than 10000. But as per new rules, company cannot allot shares to person more than 200 shares. In this case, how can we go ahead for allotment to farmers.
19 April 2014
The condition for 200 members is only for private companies.
sugar companies with farmers as shareholders are normally constituted as public companies or producer companies where there is no restriction on no. of members.
with regards to producer companies, Part IX-A of Companies Act 1956 (which deals with Producer companies), continues to be in force by virtue of proviso to section 465(1) of the companies act 2013.
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