Allotment through circular resolution

Yes 

allotment of shares can be done vide circular resolution

Thanks for your reply.

Can ypu please tell me under which section of the Companies Act, 2013, allotment through circular resolution is permissible.

Regards

Hetal Shah

Section 179 (3) of the companies act 2013 prescribe the certain powers which can be exercised by means of resolution passed at the meeting of board. powers other than that can be exercised by means of passing circular resolution which include allotment of shares

But Section 179(3)(c) of CA2013 excludes issue of shares from circular resolution. How can you issue shares by passing resolution by way of circulation?

“Issue of securities” is “offer of securities” and not “allotment of securities.” 179(3)(c) prohibit issue  of securities and not allotment of securities

Yes, allotment of shares by circular resolution is permissible.  However, resolution for issue of shares (i.e. when draft letter of offer/prospectus is approved and it is decided to offer the shares) has to be passed in a Board meeting only.

Hi All, 

Thanks for the valuable information; I have just gone through with all the respective sections but I have not found anysection/ rules where it has mentioned that  allotment of shares can be done by way of circular resolutions.

Can anyone please let me know the respective section / rule in which it has convered. 

Yes, you are correct

Originally posted by : Rohan Desai
	Hi All,  Thanks for the valuable information; I have just gone through with all the respective sections but I have not found anysection/ rules where it has mentioned that  allotment of shares can be done by way of circular resolutions. Can anyone please let me know the respective section / rule in which it has convered.

The section relating to Passing of Resolution by Circulation  speaks about the matters which  cannot be passed by way of circular resolution...
resolutions other than this can be passed through circulation

Sir,

if we say that the issue of securities will be made before allotment, then issued capital will be raised before allotment.

Further, if we look the balance sheet then we found that there is four capital viz. Authorised capital, issued capital, subscribed capital and paid-up capital.

Issued and subscribed Capital will be raised at the time of allotment by full face value of the shares and paid-up capital will be raised by  paid-up value per share. 

Dear All,

Can anyone explain complete process for allotment of shares by Circulation?