QUERY

 

A Private Limited Company having paid up capital of Rs. 40 Lacs & R & S of 2.5 cr, issued equity shares to some of the parties listed in the register maintained u/s 301 of the Companies Act, at par,:
Query:
 
1.       Whether the Issue of the shares are under preferential allotment?
 
2.       What is the reporting requirement under CARO, 2003?
 
3.       Whether the Company has made any pref. allotment to parties and companies in the Register maintained under section 301 of the Act, and if so whether the price at which the shares have been issued is prejudicial to the interest of the Company.
 
4.       Pls state the reasons for non applicability or applicability??
Replies (1)

If the company has made an allotment of shares only to few shareholders including parties covered in the register maintained u/s 301 then it will be considered as a preferential allotment of shares. ideally the shares should be issued as per the networth of a share of the company.

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