Differential voting rights

Pvt ltd 811 views 1 replies

Dear All,

I have a querry wheather Companies (Differential Voting Rights Rules) 2001 applicable on Pvt. LTd. Company. if not where it in mentioned in the act.

 

Regards

Ashwin

 

Replies (1)

The above Rule is applicable in case of sec 86 (a)(ii)

Sec 86    -     New issues of share capital to be only of two kinds

The share capital of a company limited by shares shall be of two kinds only, namely :

(a) equity share capital ; and

(i) with voting rights; or     

(ii) with differential rights as to dividend, voting or otherwise in accordance with such rules and subject to such conditions as may be prescribed. 

(b) preference share capital.

 

As per Sec 90 of the Act Section 85 to 89 is not applicable to a Pvt Co. unless it is a subsidiary of public co. Therefor above rule is not applicable to a pvt co.

 


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