Allotment of shares
This query is : Resolved
30 June 2013
Dear Colleagues
I need to understand whether allotment can be done by Circular Board Resolution??
Regards
Ssohan R Baggmar
I need to understand whether allotment can be done by Circular Board Resolution??
Regards
Ssohan R Baggmar
30 June 2013
Hi
Generally shares are allotted at Board meeting and not by circulation. But there is no restriction under the Companies Act, 1956.
Please also check what your company's articles says on it.
Generally shares are allotted at Board meeting and not by circulation. But there is no restriction under the Companies Act, 1956.
Please also check what your company's articles says on it.
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30 June 2013
The AOA STATES as under:
Regarding Share Issue:
Subject to the provisions of the Act and these Articles, the share in the capital of
the Company for the time being (including any shares forming part of any of
increased capital of the Company) shall be under the control of the Directors who
may issue, allot or otherwise dispose off the same or any of them to such
persons, in such proportion and at premium or at par or (subject to compliance
with the provision of Section 79 of the Act) at a discount and at such times as
they may from time to time think fit and proper and with full power to give any
person the option to call for or be allotted shares of any class of the Company
either at par or at a premium or subject as aforesaid at discount with option being
exercised at such time and for such consideration as the Directors think fit.
Provision of AOA for Circular Resolution:
The Board can pass resolutions by circulation provided it is duly circulated along with papers and is approved by majority and by such number of Directors as are required for quorum.
Is it ok if I do allotment of shares by Circular Board Resolution.
Please give your Inputs.
Regards
Ssohan
Regarding Share Issue:
Subject to the provisions of the Act and these Articles, the share in the capital of
the Company for the time being (including any shares forming part of any of
increased capital of the Company) shall be under the control of the Directors who
may issue, allot or otherwise dispose off the same or any of them to such
persons, in such proportion and at premium or at par or (subject to compliance
with the provision of Section 79 of the Act) at a discount and at such times as
they may from time to time think fit and proper and with full power to give any
person the option to call for or be allotted shares of any class of the Company
either at par or at a premium or subject as aforesaid at discount with option being
exercised at such time and for such consideration as the Directors think fit.
Provision of AOA for Circular Resolution:
The Board can pass resolutions by circulation provided it is duly circulated along with papers and is approved by majority and by such number of Directors as are required for quorum.
Is it ok if I do allotment of shares by Circular Board Resolution.
Please give your Inputs.
Regards
Ssohan
30 June 2013
Yes, you can do so.
You can also check my article on the same topic.
You can also check my article on the same topic.
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30 June 2013
can u please share it with me. ssohanrbaggmar@gmail.com
30 June 2013
Go to the following link, it is available on it:
https://www.caclubindia.com/share_files/resolution-passed-by-circulation-37557.asp
https://www.caclubindia.com/share_files/resolution-passed-by-circulation-37557.asp
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