Private placements in private companies.
This query is : Resolved
Ramachandra Bhakta
(Querist)
23 December 2014
Dear Sir/Madam,
I would like you to put some light on the following things-
1. If a private ltd. Company issues shares to its directors, who are already shareholders in that same company, then whether such new allotment be considered as private placement or not?
Thanks.
I would like you to put some light on the following things-
1. If a private ltd. Company issues shares to its directors, who are already shareholders in that same company, then whether such new allotment be considered as private placement or not?
Thanks.
CS Mitesh Mehta
(Expert)
24 December 2014
If the issuance of security is for a select group of people, called Private Placement.
When a company proposes to increase the share capital by issue of equity, convertible debentures (fully or partly), convertible preference shares to its existing equity shareholders it is called Right Issue
When a company proposes to increase the share capital by issue of equity, convertible debentures (fully or partly), convertible preference shares to its existing equity shareholders it is called Right Issue
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