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CA SONI KRUNAL (Querist)
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29 June 2010 what is the meaning of preferential allotment in audit report?
one of our client allots shares of the private company to its existing share holders does it amounts to preferential allotment?

jegannath G

jegannath G (Expert)
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29 June 2010 No. Preferential allotment nothing but the allotment of shares not in the basis of the existing share holding p-ercentage.

Allotment of shares to one of the share holder is the preferential allotment without giving to the other share holder or even to a non-share holder