Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Issue of preferential shares by pvt ltd company

Co Act 2013 509 views 1 replies

Uday G

Business

254 Points Joined August 2008

A Private limited company which was incorporated in 2013 is having Rs. 100,000/- equity share capital.

Now the company wants to increase the share capital to Rs. 1 Crore.

Can the company issue the Preferential shares for additional issue?

Can the company issue the preferential shares for Premium? ( Face value Rs. 10 shares issued for Rs. 50)

If yes what are all the compliance requirement.

Please suggest.

Replies (1)

Vikrant Anand

Corporate Lawyer

41 Points Joined January 2014

Mr. Uday,

Yes, the company can issue preferential shares. However, please note that issue of shares under Companies Act, 2013 needs several compliances, it is therefore, i suggest you to contact a professional who will look after the compliances with respect to increase in authorised share capital and further issue of shares.

Regards,

Vikrant