Issue & allotment of shares

Hi Friends, 

I have a small doubt in respect of Issue & Allotment of equity shares to subscribers...

The Board of a Private Company is empowered to Issue & Allot shares to its subscribers as Private Company, doesn't require approval from Shareholders.  Whereas, for an unlisted Public company approval is required from its members., IF SO..is the following permitted ???

The Members of an Unlisted Public Company authorized the Board to Issue & Allot shares to its subscribers (as and when due for allotment) to the extent the Authorized Share Capital available / permits..

A resolution on the above lines is Valid or Invalid ??... If so, please let me know 

Regards

Kiran

 

 

 

 

 

Replies (2)

If you are talking of further issue of shares by the company, it could be either rights issue u/s 62(1)(a) or private placement/preferential allotment u/s 62(1)(c) read with Sec.42.  In either case you have to  follow procedure as prescribed in the  Act/Rules.  In case of private placement the resolution must contain the detailed information as provided in the Rules.  Vague & blanket resolution like  this has no meaning.

 

Dear Sir,

A Private Limited Company plan to issue and allot the share to its existing shareholder, what will be the procedure

 

for example

 

presently co.having

Authoresed Capital 10,00,000/-

paid up capital of 1,00,000/-, having 2 sharesholder Rs. 50,000/- each

now 

company propose to issue and allot Rs 4,50,000/- to each shareholder

 

so total paid up capital would be 10,00,000/-

 

 

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