fuether issue of preference share

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This query is : Resolved

Megha Gupta (Querist)

07 April 2009 hello everyone,

our co is a pvt. jointventure co. in which foreign stake is 51% and indian stake is 49%. our authorised capital is 14 crore including 8 lakh pref shares of Rs. 100 each. and issued & paid up pref shares are 460333 shares of Rs. 100 each.

now our co wants to increase its issued pref shares for meeting bank related requirement of Rs. 1.5 crore.

now pls tell what compliances i should follow for issuing further pref sahres and to what extent i should issue pref shares? how should i calculate the no of shares that should be issued?

and also tell all applicable forms and amount of stamp duty applicable in Mumbi for the same.

pls reply ASAP, its urgent.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

07 April 2009 Step 1 : Conduct board meeting record the necessity for issuing shares and get the approval of the board. Fix the EGM Date.

Step 2 : Conduct EGM. Pass resolution authorising directors to issue shares. And if required pass 81 1A resolution also.

Step 3: File form 23 with ROC.

Step 4: Conduct board meeting and get authorisation for sending rights letter to existing shareholders.

Step 5: Since yours is a foreign stake check whether that company can invest through automatic route as per rbi guidlines under FEMA. If not falling under automatic route then get the approval from FIPB. Foreign investment promotion board.

Step 6: Receive money from foregin collabrator and inform RBI.

Step 7: Allot shares and file Form 2.

step 8: Issue the physical shares and enter the same in the members regiter.

Step 9: Stamp duty you have to check with your concerned registrar.

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