allotment time u/s 81(1A) for unlisted companies

A public unlisted company has to within one month from the date of first allotment and within one year from the formation wants to issue further shares to outside shareholders.

As the allotment is to outside shareholders, section 81(1) is not applicable as this section deals with allotment to inside shareholders.

The allotment is within the time period specified in section 81(1). Hence, Ramaiya in its scope of section states that the requirement's of this section is not applicable.

waiting for expert's views

Dear Friend

I am talking about for the preferential allotment under section 81(1A) of the Comapnies Act, 1956...Further i am talking for  the unlisted companies as for the listed companies there is a time period of 15 days in the ICDR regulations.

Waiting for Reply
 

There has been queries relating to this previously also. To my knowledge there is no time limit specified in the Companies Act, 1956. Allotment must be made within a reasonable time.

But what should be the reasonable time whether it may be 6 months or more than 6 months..

there is specific rules for preferential allotment by the unlisted companies, please go and search on google. I remember that the time limit for special resolution passed u/s 81(1A) is 1 year. for more details please read rules

No there is no time limit in the rules , i have read them ,,......

vipul please read every thing care fully  please read pint no 4 page 2 heading special resolution

Special Resolution (Rule 4) : "As per these rules, the special resolution shall be acted upon within 12 months. However, sub-section (1A) has not prescribed a necessary provision in the Articles of Association before a special resolution is passed for issue of shares on preferential basis. The 12 months period is sufficient within which the proposal is to be implemented. The funds may be received in phases and accordingly allotments made for issuance of shares or other convertible securities, as the case may be..."

as such there is no specific time period but co. can allot it within one year of passing SR otherwise a fresh resolution is required to be passed..

yes i have also read , special resolution shall be acted upon with in a period of 12 months ....

Dear Professionals,

                                   What if the company allotted shares before receiving the share application money, and that the share application money is received after a month?

Waiting for your reply.

Dear All,

I would like to bring your attention to MCA Notification 14th December,2011

Rule 8 (4)

Any Other Views on this