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Can a private company issue further equity shares?

kishore (STUDENT(IPCC)) (867 Points)

22 May 2018

can a private company issue further equity shares? other than its promotors, directoirs and share holders? if s kindly tell procedure thanks?

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7 Replies

Aditi (Student) (389 Points)
Replied 22 May 2018

they can issue by private placement ( section42 of companies act)

kishore (STUDENT(IPCC)) (867 Points)
Replied 22 May 2018

s, u r correct mam.. what is procedure and which form is to be filed?

Aditi (Student) (389 Points)
Replied 22 May 2018

refer section 42 for detailed procedure for private placement. special resolution needa to be passed . Letter of offer(pas-4) cum application shall be circulated to the selected persons whose names are identified by board and within 30 days of circulation pas-4&pas-5(records of private placement offer) needs to be filed with roc.
allotment to be made within 60 days of receipt of application money and pas-3 needs to be filed within 15 days of allotment , till pas -3 has notbeem filed co. cant utilise the money .