Public Ltd Co

This query is : Resolved

S.Jegadeesan (Querist)
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21 May 2011 Dear Sir,
Is it legally valid if the promoters itself subcribed 90 % of issued share capital as per prospectus, if a company has not received the minimum subscription from public?
Ex:
M/s.Jk Ltd incorporated with 1 Crore share capital.But issued share capital as per prospectus for Rs.50 Lakh.The promoters of Jk Ltd has taken the shares for Rs.49 Lakh.
Is it legally valid? Sebi will accept the Jk Ltd as listed company.

CS Bijoy

CS Bijoy (Expert)
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21 May 2011 In case of listed company the company must comply with the listing agreement of minimum public shareholding otherwise it will not be treated as listed.

S.Jegadeesan

S.Jegadeesan (Querist)
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23 May 2011 Sir,
Whether It should be complied by the listed company through out its life or at the time of first issuing.

S.Jegadeesan

S.Jegadeesan (Querist)
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23 May 2011 If the company fails to receive the minimum subscribtion, what will happen?
Except the refund of received amount.

Regards,
S.Jegadeesan

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