Ipcc business may 2013

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Shruthi (Querist)
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16 October 2013 The AOA of H ltd. contained a provision that upto 3% of issue price of the shares as underwriting commission may be paid to the underwriters. The BOD of the company decided to pay 4% underwriting commission. Can the BOD do so? Also state the provisions of the law in this regard as stated under Indian companies act 1956.

It is 8 mark question.

Thanks in advn.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 October 2013 If the articles of co permits then yes by passing suitable resolution to it.

If articles do not permit then first ammend articles by passing special resolution and then pass resolution for agreement to be allowed to be undertaken.

Shruthi

Shruthi (Querist)
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16 October 2013 But the limit of the underwriting commission is 2.5% of the issued capital.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 October 2013 Where it is mentioned that and to which type of company u talking- Public or private?

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