07 December 2016
Dear Friends & Prof Colleagues , Please consider the given below issue and post your comments.
In case of merger , allotment of shares as consideration for acquisition, to more than 200 allotee's, be treated as public issue? Whether shares issued by a company to individual share holders to acquire business(Holding Subsidiary relationship) of another company be treated as public offer?
08 December 2016
If the shares issued pursuant to scheme of merger/ amalgamation then it wont amount to public offer. It can be offered to more than 200 members
10 December 2016
Thanks . Please provide legal backing for why it would not amount to public offer. Please consider the provisions of sec 42 and section 23 of companies act 2013.
CAclubindia
