Dear Readers'
Under Companies Act, 2013, Can Board of Director of private limited company allot shares to existing shareholders or other persons without approval of members.
By going through section 42 and 62 of Companies Act, 2013, i understand that private company must get approval of members to allot any kind of shares in company. comments are solicited.
Board has power to issue shares on rights basis u/s 62(1)(a). However, special resolution will be required in case of preferential allotment u/s 62(1)(c).
Board has power to issue shares on rights basis u/s 62(1)(a). However, special resolution will be required in case of preferential allotment u/s 62(1)(c).
Normally , the Subscriber to MA should take some share while signing MA as per old act ,How this old formal thing has been accommadated in the new law
CAclubindia
