Shares issue (Corporate Law)

This query is : Resolved

Author : Anonymous

( Author )
08 August 2012

What is the procedure to issue equity shares for newly incorporated public limited company ?

Neha Jain

( Expert )
08 August 2012

Section 81 (1A) is not applicable in the case of newly regd public company.

Therefore make allotment of shares in board meeting and file form 2 on MCA portal.

Regards

Author : Anonymous

( Author )
08 August 2012

thank you neha
one more query
authorised share capital of the company is 10 cr and face value 10 rs. as per this MOA can we recieve an application for 1 cr shares.

Neha Jain

( Expert )
08 August 2012

yes you can receive application for 1 cr shares

Author : Anonymous

( Author )
08 August 2012

what is the procedire for increasing authorized capital ? can we increase if we already not issued existing authorized capital ?

Neha Jain

( Expert )
08 August 2012

Yes, autho capital can be increased even if you have not used existing autho capital.

Procedure :

1. Hold Board meeting

2. Pass resolution

3. Convene EGM

4. Pass Ordinary / Special resolution. Check your AOA in this regard.

5. File form 5

6. In case Special reso is passed also file form 23 in addition to form 5

7. Alter MOA capital clause

Neha Jain

( Expert )
08 August 2012

“RESOLVED THAT pursuant to the provisions of Section 16, 94, all other applicable provisions, if any, of the Companies Act, 1956 and Articles of Association of the company, the authorised share capital of the company be and is hereby increased from Rs. 50,00,00,000/-(Rupees Fifty Crore only) divided into 5,00,00,000 (Five Crore) Equity Shares of Rs. 10/- each to Rs. 65,00,00,000/-(Rupees Sixty Five Crore only) divided into 6,50,00,000 (Six Crore Fifty Lacs) Equity shares of Rs.10/-(Rupees Ten only) each.”

“RESOLVED FURTHER THAT the company’s memorandum of association be and is hereby altered as follows:

In clause V of the memorandum of association of the company the words and figures:
The Authorised Share Capital of the company is Rs. 50,00,00,000/-(Rupees Fifty Crore only) divided into 5,00,00,000 (Five Crore) Equity Shares of Rs. 10/- each.

be substituted by the following words and figures:

The Authorised Share Capital of the company is Rs. 65,00,00,000/-(Rupees Sixty Five Crore only) divided into 6,50,00,000 (Six Crore Fifty Lacs) Equity shares of Rs.10/-(Rupees Ten only) each.

Neha Jain

( Expert )
08 August 2012

EXPLANATORY STATEMENT PURSUANT TO SECTION 173(2) OF THE COMPANIES ACTS, 1956

ITEM NO. 1

The authorised capital of the company is presently Rs. 50,00,00,000/-(Rupees Fifty Crore only) divided into 5,00,00,000 (Five Crore) Equity Shares of Rs. 10/- each. It has become mentable to increase the authorised capital of the company to enable to raise paid up capital further to diversify and expand activities of Company. The resolution is therefore to increase the authorised capital of the company from Rs. 50,00,00,000/-(Rupees Fifty Crore only) divided into 5,00,00,000 (Five Crore) Equity Shares of Rs. 10/- each to Rs. 65,00,00,000/-(Rupees Sixty Five Crore only) divided into 6,50,00,000 (Six Crore Fifty Lacs) Equity shares of Rs.10/-(Rupees Ten only) each.

In view of the fact that the Authorised Capital of the company is being increased the existing clause V of the Memorandum of Association of the company needs to be amended.

The members are requested to pass necessary resolution set out in the notice as ordinary resolution to carry out the necessary amendments in the memorandum

Author : Anonymous

( Author )
08 August 2012

Sorry Neha..

Authorized capital of the company is 10 Cr .we received application for 1 cr shares (face value Rs 10/-) and payment made only 3 cr where as commitment is 10 Cr Rs do we need to issue shares based on paidup value ( Rs 3/-) or do we need to issue 30 Lakhs shares of Face value 10 Rs

Neha Jain

( Expert )
08 August 2012

Dear Author,

Pls elaborate your query in legible manner. I am not getting your query properly.

thanks

Author : Anonymous

( Author )
08 August 2012