allotment of shares in pvt ltd.

Save Share

This query is : Resolved

CA YOGESH (Querist)
Follow

16 October 2007 If a pvt ltd company goes for allotment of its shares, whether it is necessary for pvt. ltd company to offer its shares first to existing shareholder? . In this regard wht is in Table A

CA. Rayan Sequeira

CA. Rayan Sequeira (Expert)
Follow

16 October 2007 A pvt compapny cannot offer its share to the public it can only offer it to its exisisting shareholders and/or their relatives. in such case of private placement of share it will have to be reported in CARO

Srinath A. N.

Srinath A. N. (Expert)
Follow

16 October 2007 Table A is not restricting for transfer of shares to other than existing shareholders. Since there is restriction for pvt. co. to offer shares to the public, it should first offered to existing shareholders and on refusal by existing shareholders shares shall be allotted to otherthan existing shareholders.

CA YOGESH

CA YOGESH (Querist)
Follow

17 October 2007 If a pvt ltd company goes for allotment of its shares, whether it is necessary for pvt. ltd company to offer its shares first to existing shareholder? . In this regard wht is in Table A

Srinath A. N.

Srinath A. N. (Expert)
Follow

17 October 2007 Since table A is drafted with major applicability to Public Company. It is Silent on the said issue.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now