restrictions in voting rights.

there are three ways of doing this: 1. issue equity shares with differential voting rights. or 2. have a provision in AOA (usually via shareholder's agreement). or 3. via order by an appropriate judicial forum

There is an unlisted Public Ltd company having 10 shareholders (each having 20000 shares and One Vote Per share) (Paid Up value Rs.10 per Shares).

 

The Company wants to issue Equity  Shares with differential voting rights ( 1 Shares=10 Votes) by way of Private placement in the month of September 2017 to 200 persons other than 10  existing shareholders.

 

After this The Company wants to issue Equity  Shares with differential voting rights ( 1 Shares=20 Votes) by way of Private placement in the month of December 2017 to 200 persons other than the  existing 210 shareholders .

 

Can the Company do this in the Financial Year 2017-18 or it can only do private placement once in the Financial Year?

one private placement means "one Pvt placement offer/invitation".. so in your case, until the first offer for one kind of security is open, another offer/invitation can't be made. however, if all the securities under first offer are fully allotted or the offer is rescinded, then next offer can be floated. for your case there is no condition regarding min one year gap between two offers. rather, the condition is that - as long as one offer under private placement is active, another offer can't b made.

The second private placement offer can only be made in FY 18-19 as in your 1st Offer the limit of 200 per FY gets exhusted.

A company can restrict Voting rights in GM only as per section 106 which provides two situations:
1. when a shareholder has failed to pay call money and
2. when a company exercises its right of lien on shares.

This restriction can be imposed only if AOA provides for the same.

Originally posted by : Bhargav parekh
	The second private placement offer can only be made in FY 18-19 as in your 1st Offer the limit of 200 per FY gets exhusted.

Thanks for the answer