Allotment through circular resolution


Hetal (Cs)     09 January 2015

Hetal
Cs 
 25 points

| My Other Post

Can we allot  equity shares through circular resoluiton under the Companies Act, 2013?

 

Thanks 

Hetal Shah

avater

CS Mitesh Mehta (Company Secretary)     15 January 2015

CS Mitesh Mehta
Company Secretary 
 1098 likes  17022 points

View Profile | My Other Post

Yes 

allotment of shares can be done vide circular resolution

Hetal (Cs)     15 January 2015

Hetal
Cs 
 25 points

View Profile | My Other Post

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

avater

CS Mitesh Mehta (Company Secretary)     15 January 2015

CS Mitesh Mehta
Company Secretary 
 1098 likes  17022 points

View Profile | My Other Post

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

 

 

2 Like
avater

Manish Soni (CA , CS)     27 June 2015

Manish Soni
CA CS 
 31 likes  828 points

View Profile | My Other Post

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?

avater

CS Mitesh Mehta (Company Secretary)     28 August 2015

CS Mitesh Mehta
Company Secretary 
 1098 likes  17022 points

View Profile | My Other Post

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

 

avater

P C Agrawal (Vice President (Corporate))     29 August 2015

P C Agrawal
Vice President (Corporate) 
 819 likes  8045 points

View Profile | My Other Post

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.

 

3 Like

Rohan Desai (Student)     03 May 2017

Rohan Desai
Student 
 1 likes  27 points

View Profile | My Other Post

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. 

1 Like

FCS DHARMENDRA MISHRA (Legal & finance)     13 December 2017

FCS DHARMENDRA MISHRA
Legal & finance 
 24 points

View Profile | My Other Post

Yes, you are correct

Law Aspire (CS)     25 January 2018

Law Aspire
CS 
 17 likes  737 points

View Profile | My Other Post

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


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  




Popular Discussion


view more »