PROCEDURE FOR ISSUE OF SHARES OF PRIVATE LIMITED COMPANY
The company can issue share in accordance with the provision of section 291 and 292 read with company’s article of association. The provisions of section 81 is not applicable to private limited company. There are following procedure or issuing and allotting shares:
1. After receiving share application money in bank account/cash, call a Board Meeting for issue and allot shares to the investor. 2. Hold Board Meeting for issue and allot shares 3. After issuing & allotting shares file Form-2 with ROC with in 30 days from the date of allotment. 4. Issue shares certificate as per provisions of section 113 of the Companies Act, 1956. 5. Make entry in Minutes 6. Give the details of shareholders in Form-20B(Annual Return) with ROC annually with in 60 days from the date of AGM.
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