Allocation of shares

A pvt ltd company needs to allocate shares beyond authorised share capital limit, by 31st may 2010.

The EGM approving the increase in authorised share capital was held on 10th May. I filed form 5 on20th may, I got the approval from MCA on 3rd June. Now can i file Form 2 showing the date of board meeting as before 31st may(paper meeting) ? Is it allowed to allocate shares before form 5 has been approved?

Please help!

Replies (3)

As per ethics it is wrong but i think you can pass resolution for allotment mentioning a line like allotment subject to approval of increse in authorised share capital of the company by CG, and now while filing Form 2 proof for approval of Form 5 may be attached.

But i am not sure expert comment solicited. 

Your problem is quite simple. You can held your board meeting for allotment of further equity share any time after May 10, 2010 i.e. after holding EGM. File form-2 for allotment after approval of form-5 for increase in AC i.e. after June 03, 2010.

In other words there is no need to wait for the approval of form-5 by ROC for allotment of equity shares. You can allot shares immediately after EGM. But it is advisable to submit form-2 after approval of form-5 by ROC.

Revert if there is any doubt.

Thanks

Thanks Ankur, That's a huge relief!

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