Issue of equity shares without voting rights.

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Shampa Ghosh (Querist)

21 February 2019 Whether a start up private limited company can issue equity shares without voting rights? if yes, then what are the procedures required to follow and laws governing such issue?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

22 February 2019 Yes. Provided the memorandum and articles of association of the company so provide

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Shampa Ghosh

Shampa Ghosh (Querist)

22 February 2019 Thank you sir....;can you help me regarding the share issue procedure? Will the process of issue be exactly like normal share issue or I need to follow some other procedure?

CS Mitesh Mehta

CS Mitesh Mehta (Expert)

22 February 2019 1. You have to reclassify your existing Authorised Capital by passing Ordinary Resolution in General Meeting and alter Capital Clause of Memorandum of Association & File Form SH-7 with copy of Altered MOA and Copy of Resolution passed.
2. You have to pass Special Resolution for offer and issue of shares on preferential basis through private placement and file Form MGT 14
3. After allotment of shares file PAS-3 within 15 days.

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Shampa Ghosh

Shampa Ghosh (Querist)

22 February 2019 Thank u very much sir!

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