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Issue of preferential shares by pvt ltd company

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Uday G

Business

106 Points Posted on 08 January 2015

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

29 Points Posted on 09 January 2015

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