Allotment of shares in kind
This query is : Resolved
sai prasad
(Querist)
09 February 2016
please tell me the procedure for allotment of shares in kind for a director in closely held Private limited company
CS Divesh Goyal
(Expert)
12 February 2016
Que: Can a Company issue shares on Cash?
Ans: As per Companies Act, 2013
Right Issue of Shares: For right issue of shares Section- 62 of Companies Act, 2013 will apply.
According to my understanding: Companies Act, 2013 doesn’t restrict to issue shares on cash. No method is provided in Companies Act, 2013 u/s 62 for issue of shares. Like mentioned in Private Placement of Shares Section- 42.
In Section- 42 of Private Placement of Shares its mentioned that company will receive money from the subscriber in the Bank account of Company. That’s mean subscriber have to make payment through Banking channel not by cash. But such restriction is not given under Section – 62 for right issue of shares.
Ans: As per Companies Act, 2013
Right Issue of Shares: For right issue of shares Section- 62 of Companies Act, 2013 will apply.
According to my understanding: Companies Act, 2013 doesn’t restrict to issue shares on cash. No method is provided in Companies Act, 2013 u/s 62 for issue of shares. Like mentioned in Private Placement of Shares Section- 42.
In Section- 42 of Private Placement of Shares its mentioned that company will receive money from the subscriber in the Bank account of Company. That’s mean subscriber have to make payment through Banking channel not by cash. But such restriction is not given under Section – 62 for right issue of shares.
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