sec.81(1A)
This query is : Resolved
anant hegde
(Querist)
29 November 2010
can a pvt company issue shares under preferential allotment?
udit sharma
(Expert)
29 November 2010
Yes.. it can
CA.ViVeK M ACA
(Expert)
29 November 2010
The pvt company can issue shares under the preferentail allottment scheme...
CA Sanat Pyne
(Expert)
29 November 2010
Agree with experts.
In the case of a private company and an unlisted public company, the auditor would have to examine whether the price at which the company has made the preferential allotment of shares is prejudicial to the interest of the company. In so far as the price at which preferential allotment is made is concerned, it may be noted that valuation of shares of a company involves use of judgment, knowledge of the business, analysis and interpretation and the use of different methods, which may result in assigning different values based on different methods. There are certain basic factors, which affect the value of a company’s shares for which the price calculated is adjusted. The factors are earnings, dividends declared, asset value and goodwill of the company.
In the case of a private company and an unlisted public company, the auditor would have to examine whether the price at which the company has made the preferential allotment of shares is prejudicial to the interest of the company. In so far as the price at which preferential allotment is made is concerned, it may be noted that valuation of shares of a company involves use of judgment, knowledge of the business, analysis and interpretation and the use of different methods, which may result in assigning different values based on different methods. There are certain basic factors, which affect the value of a company’s shares for which the price calculated is adjusted. The factors are earnings, dividends declared, asset value and goodwill of the company.
Ankur Garg
(Expert)
29 November 2010
Section 81 is not applicable to a private company. So if you go for pref allotment in private company you do not need to follow the provisions of section 81(1A) i.e you don't have to take prior approval of shareholders through special resolution in GM.
You can simply allot share by passing a board resolution and filing of form 2 with ROC within 30 days of allotment in BM.
Regards
You can simply allot share by passing a board resolution and filing of form 2 with ROC within 30 days of allotment in BM.
Regards
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
