PVT ltd co. -preferential allorment

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Rahul (Querist)
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14 May 2010 Dear members,

kindly confirm if there is any specific guideline for preferential allotment of shares by PRIVATE LIMITED COMPANIES.

my understanding is that, unlike Unlisted Public Companies (Preferential Allotment). Rules, 2003 there is as such no guideline for private limited companies except following general condidtions:

1. board resolution.
2. general meeting resolution has to be passed.
3. should be within the limits of authorised capital and should be allowed in AOA of the company.

regards,

Rathin Das
company secretary

Ankur Garg

Ankur Garg (Expert)
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14 May 2010 Agree with your understanding.

Slight modification regarding point 2 ===section 81 is not applicable to a private company hence GM resolution not required.

Rahul

Rahul (Querist)
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15 May 2010 Thanks Ankur Sir, appreciate you reply and agreed.

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