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How to increase subscriber of shareholder after getting cin

GAURAV SINGH (Managing Director) (99 Points)

10 September 2013

My question is that how to increase no. of shareholder (first subscriber of MOA) of a private limited company after the final incorporation(after getting CIN) of company.My company is registered with 2 subscriber but after incorporation 5 more person are ready to subscribe the share.please help.

then please tell me then hoe i allot shares to the rest of subscriber who wants to take the share of company if i already alloted the full share to the existing member.

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12 Replies

Vandana J Doshi (Practising Company Secretary) (12562 Points)
Replied 10 September 2013

u cannot change the subscriber....just allot shares to them....moreover, why do u want to change the subscribers?

1 Like

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

Agree With Vandana Opinion.........

You can not increase no. of subscriber after incorporation of company. You will only issue further shares to increase members of the company.

1 Like

GAURAV SINGH (Managing Director) (99 Points)
Replied 10 September 2013

my question is to increase the subscriber of MOA not to change among them and 1 more question is how to invest private equity fund in our company as our company is Online shopping company who wants some operating capital from funder like Tiger global, Venture capital etc

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

You use the word investor in place of subscriber. If you have investor who intended to invest in your company then you can allot shares through Board Meeting. Whether it is an online shopping company or not.

The allotment procedure are same for every type of company.

1 Like

GAURAV SINGH (Managing Director) (99 Points)
Replied 10 September 2013

where i use that word "investor".I mean where on subscriber sheet of MOA or any where else.

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

When a company is incorporated and company come in to existence. There after their is a need of fund for the business purpose then company managment arrange a person who can invest their money in company business. When they agree to invest in the company and there after the company allot the shares to such person, then that person is called investor.

Investor always come after incorporation of company.

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

Definition of member — section 41

All the subscribers of the Memorandum of Association shall be deemed to have agreed to become members of the company and on registration of a company shall be entered as members in the Register of members.

Section 2(27) of the Companies Act, 1956, provides, that a "member", in relation to a company, does not include a bearer of a share-warrant of the company issued in pursuance of section 114.

Section 41 deals with definition of member which provide as under:—

(i) The subscribers of the Memorandum of a company shall be deemed to have agreed to become members of the company, and on its registration, shall be entered as members in its register of members.

(ii) Every other person who agrees in writing to become a member of a company and whose name is entered in its register of members, shall be a member of the company.

(iii) Every person holding equity share capital of a company and whose name is entered as beneficial owner in the records of the depository shall be deemed to be a member of the concerned company.

GAURAV SINGH (Managing Director) (99 Points)
Replied 10 September 2013

Thanks Mr. Ajay Ji for your this obligation.

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

My Pleasure...................

GAURAV SINGH (Managing Director) (99 Points)
Replied 10 September 2013

Dear Mr. Ajaj Ji does is it possible to sign 6 subscriber on MOA sheet but mention only 2 promoters in form 1A,1 having first 2 of MOA sheet are promoters and rest of it will become share subscriber.

Ajay Mishra (Company Secretary) (74332 Points)
Replied 10 September 2013

Yes, If you have given details of 2 promoters in Form-1A, then you can increase number of promoters in MOA at the time of submitting Form-1 with ROC. For this you will take NOC from this 2 promoters that they have no objection on addition of subscribers.