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share allotment

1151 views 3 replies

RAMANADHAN T

PARTNER

30 Points Posted on 25 May 2011

Could anyone help me on this...urgent

A public ltd company(not listed) has passed resolution for preferrential allotment of shares in Feb 2011. Collected share application money before March 31, 2011. It was decided by the directors unofficially to issue shares before 31.3.2011. Unfortunately forgot to call board meeting for allotment. Fake board meeting is not possible for the company. My querry is whether company secretary or other officials of the company can allot shares(can make records to that effect) before 31.3.2011 and subsequent ratification by the board?

Replies (3)

udit sharma

Company Secretary

2303 Points Posted on 25 May 2011

Allotment of shares can be done only pursuant to the resolution passed by the Board of Directors of the Company. What you have mentioned is not possible.

udit sharma

Company Secretary

2303 Points Posted on 25 May 2011

In my opinion,u can obtain the consent of the Board of Directors by way of a Circular Resolution, in case it is not possible to show a fake Board Meeting. In the covering letter to the resolution, u can mention the fact that resolution is to be effective from (any date). Take note of the circular resolution at the next Board Meeting of the Company. Views of experts are solicited.........

RAMANADHAN T

PARTNER

30 Points Posted on 25 May 2011

I think that it Is not possible to give effect to resolution for allotment of shares with retrospective effect, either in board meeting or circular resolution? kindly provide views