plz help urgently

There are 3 shareholders .A company wants 2 allot 5% of its capital 2 only single shareholder can it do so

or is it is required 2 give right issue 2 all existing shareholder u/s 81(1a)

plz help

Replies (3)

If your company is a private company then such allotment is possible without any doubt as section 81 is not applicable to a private company.

 

However in case of a public company also this allotment is possible if this allotment is with in the time limit mentioned in section 81(1). 

Hi

1. In case of private company: Firstly refer the Articles of Asscoiation of the Company and allot accordingly.

2. In case of public limited company, allotment to shareholders on preferential basis (as intended by you) can be made only as per the provisions of section 81(1A) of the Companies Act.

Hi Anup

I dont agree with views given by pur friend Ankur and Hinna.  If company wants to allot shares to single shareoler without offering same to other share holder this will amout to opression of right as member of the company. So other shareholder can apply to company Law board agaisnt oppression of right as member us 397/398. so i am of the view share can not be allotted to a sigle share holder without offering it to others shareholders.

Thank You

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