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Allotment of shares

Molisha Mirani (17 Points)

14 August 2019

i have an urgent query...

What is the procedure to allot shares to existing directors and what are the requirements for allotment ???

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4 Replies

Mohanraj J (1162 Points)
Replied 14 August 2019

recently we received FDI against additional Injection of Authorised Share Capital. In that we issued 98% to Holding Company n 2% to Parent Company as per board resolution with the help of Company Secretary

Yogesh Dave (141 Points)
Replied 16 August 2019

it would be termed as preferencial allotment.

pass Board resolution and receive susbscripttion money into the bank account, offer letter in PAS-4 to existing director. then conduct EOGM for approval of issue of shares, after receiving the subscripttion money allot the shares within 60 days by passing board resolution for allotment of shares.

company can't issue shares at discount.

if company issue shares at premium then requre share valuation report from the category -1 merchant banker.

file MGT-14 (for EOGM SR)
file PAS-3 (return of Allotment of share)
file GNL-2 (PAS-4 & 5)

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