Can a pvt. co. issue shares with no voting rights
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 July 2013
Can a Private Company Issue Equity Shares with no Voting Rights??
The Company was incorporated in 2012.
Thanks and Regards
The Company was incorporated in 2012.
Thanks and Regards
19 July 2013
Voting Rights on Shares:
Section 87 of the Companies Act, 1956 deals with voting rights and following are the provisions in this regard:—
(a) Voting rights of equity shareholders.—Every member of a company limited by shares and holding any equity share capital therein shall have a right to vote, in respect of such capital, on every resolution placed before the company. [Section 87(1)(a)]
(b) Voting rights on poll.—Voting right of every member on the poll shall be in proportion to his share of the paid up equity capital of the company. [Section 87(1)(b)]
However, section 87 is not applicable in case of an independent private company. [Section 90(2)]
Section 87 of the Companies Act, 1956 deals with voting rights and following are the provisions in this regard:—
(a) Voting rights of equity shareholders.—Every member of a company limited by shares and holding any equity share capital therein shall have a right to vote, in respect of such capital, on every resolution placed before the company. [Section 87(1)(a)]
(b) Voting rights on poll.—Voting right of every member on the poll shall be in proportion to his share of the paid up equity capital of the company. [Section 87(1)(b)]
However, section 87 is not applicable in case of an independent private company. [Section 90(2)]
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Multiple payment of self assessment tax for A Y 2025-2026
- CAPITAL GAIN REDEVELOPED FLAT
- REGARDING ITR FILING QUESTION
- Requirement under FEMA &RBI
- GST REGISTRATION REQUIRED TO DIAGNOSTIC UNIT
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Computation of Dividend
- GST ISD Query on various AMCs
- Short Term Gain Reporting ITR
- U/S 194 T
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
