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Nidhi company


19 October 2017 What are the procedure after incorporating a nidhi company(like share issue)?.

23 October 2017 Provisions of Section 42 relating to Prospectus and allotment of securities shall apply to nidhi company except for explanation II, Section 42(3), Section 42(5), Section 42(7) shall not apply to Nidhi companies. Accordingly provision such as recording of names of proposed allottees prior to invitation to subscribe, restrictions on fresh offer,
restrictions on payment of subscription money through cash etc. shall not apply to Nidhi companies. Section 62 relates to further issue of share capital. Section 62 is not applicable to Nidhi companies.

Further issue preference shares, debentures or any other debt instrument by any name or in any form whatsoever is prohibited for nidhi companies.

Every Nidhi incorporated shall issue equity shares of the nominal value of not less than ten rupees each. No service charge shall be levied for issue of shares. Every Nidhi shall allot to each deposit holder at least a minimum of ten equity shares or shares equivalent to one hundred rupees:
It may be noted that a savings account holder and a recurring deposit account holder shall hold at least one equity share of rupees ten.

Membership of Nidhi:
1) A Nidhi shall not admit a body corporate or trust as a member.
2) Every Nidhi shall ensure that its membership is not reduced to less than two hundred members at any time.
3) A minor shall not be admitted as a member of Nidhi. It may be noted that deposits may be accepted in the name of a minor, if they are made by the natural or legal guardian who is a member of Nidhi

29 October 2017 could you please explain the step by step procedure after the incorporation?






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