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Share allotment

Pvt ltd 702 views 3 replies

Juhi Pant

Company Secretary

132 Points Joined May 2014

Under Companies Act, 1956 Company can start its business after taking Certificate of Incorporation, but now under new Companies Act, 2013 a Company can start its business only after taking Certificate of Commencement.

so, can a Company can allot share shares to new shareholder after company is incorporated or new shares can be alloted after taking Certficate of Commencement.

Replies (3)

P C Agrawal

Registered independent director Past Ch

8229 Points Joined March 2007

Allotment of shares is not considered as commencement of business. Hence we can allot shares even before getting certificate of commencement of business.

Juhi Pant

Company Secretary

132 Points Joined May 2014

Thanks for the reply. Our Company has already two shareholders at the time of incorporation, now it wants to have one more shareholder. so, can it allot shares to new shareholder before taking certificate of commencement.