Issue of warratnt convertible into equity by a private limit
This query is : Resolved
P.C. Joshi
(Querist)
05 September 2012
Dear Friends,
Can a Private Limted Company issue warratnt convertible into equity to non shareholders. If yes what are the formalities, i.e.
i. is Board can staright away the shares
ii Is passing of special reolsution u/s 81(1A), is required, but sec 81(1A) is applicable only to public companyes
iii. Does issue of warratnt requires a provision in the articles and where teher is no provision Amendment in Articles of the Company is required .
An early response is requested.
Can a Private Limted Company issue warratnt convertible into equity to non shareholders. If yes what are the formalities, i.e.
i. is Board can staright away the shares
ii Is passing of special reolsution u/s 81(1A), is required, but sec 81(1A) is applicable only to public companyes
iii. Does issue of warratnt requires a provision in the articles and where teher is no provision Amendment in Articles of the Company is required .
An early response is requested.
Ajay Mishra
(Expert)
05 September 2012
Hi
Firstly check whether you articles permit to issue of warrants convertible into equity shares.
I will suggest you to comply the provision of section 81(1A) and the Rules made their under as a good corporate practice for issue of warrant.However, the provision of section 81(1A) is not applicable to private limited company.
Firstly check whether you articles permit to issue of warrants convertible into equity shares.
I will suggest you to comply the provision of section 81(1A) and the Rules made their under as a good corporate practice for issue of warrant.However, the provision of section 81(1A) is not applicable to private limited company.
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