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Further issue of share capital

627 views 3 replies

Shilpa

Company Secretary

234 Points Posted on 26 May 2014

Query: If Private Company wants to issue further share to persons other than the existing shareholder, then provision of section 62(1)(c) needs to comply.

As per this, Authorisation in AOA, SR is must and also the Company has to specify certain items in its explanatory statement. Further, the Valuation Report of Registered Valuer is mandatory.

Besides this sec 42 (Chapter 3) needs to be follow.

Now my query is that even in case shares are issued in section 62 and company has complied general provisions of sec 42, whether the Company has to comply Rules to chapter 3 also?

Which states that the Company has to give Offer Letter in PAS-4 and need to maintain record of issue in PAS-5.

Kindly reply.

Regards

Shilpa

Replies (3)

P C Agrawal

Registered independent director Past Ch

8229 Points Posted on 26 May 2014

Yes please, it is mandatory in case of private placement.

Shilpa

Company Secretary

234 Points Posted on 26 May 2014

Thanks sir...but if we want to issue shares as a preferential allotment...even then we need to prepare offer letter..as mentioned in rules to chapter 3.

Vandana J Doshi

Practising Company Secretary

12562 Points Posted on 27 May 2014

Hi Shilpa,

In case of preferential allotment you have to follow the given rules...requirements of PAS 4/5 is for private placement only.....refer to the rules for the concerned chapter and check.....you will need a SR in GM for preferential allotment and some extra info is to be mentioned in the notice.....

Hope it is clear..

Regards