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Category of persons allowed to be alloted shares in pvt. ltd
In case of increase in subscribed share capital, Share allowed to be alloted to which Category of persons?
Any person being a friend of the member of the company or only relatives or any other persons as well?
Replies (9)
Clarify whether its a private company or public company?
in case of Pvt ltd. company
In case of a Private Companies
1) Members
2). Directors
3). Relatives of the Directors
can be shareholders
A private company can allot shares to any one. It is not necessary that the person should be director/ relative/ friend etc. There is no bar. It can issue shares to strangers having no relation with the company. Thanks and Regards
Dear Charu, Pls appreciate any one can be shareholder in a private company. However private company can accept loan only from the 3 entities mentioned by you.
So Sorry,
Neha, you are right and i mistakenly mixed provisions of 3(iii) (c) and 3(iii)(d).
Private Company can allot to anyone.
Agree with Neha Ma'm!!!! Anyone can be a Share Holder provided existing members' consents are accorded and Resolution is passed!!
Unless the Articles of the private company provide otherwise, consent of existing members is not required. Only Board resolution will suffice.
Under Section 3(1)iii (c) Private Companies are barred to offer shares for subscripttion. But such Company is not barred from accepting such subscripttion from Public. If this could be proved then Private Company can easily allot shares to general Public.
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