Share Certificate

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Guest

There is JV between two partner - one partner has contributed towards equity in September 2010 and other partner has not contributed so far.

The date of commencement of business is Sept 3, 2010.

The shares has not been issued becoz of contribution awaited from other partner till date (Feb 3, 2011). Can I issue shares to subscribers who have contributed towards equity contribution and subsequently to other partner based on the receipt of equity contribution.

I understand 113 is applicable for issues of shares within three months.

Replies (3)

udit sharma

Company Secretary

2303 Points Joined October 2010

In my opinion, you should not allot the shares to one Partner first and to second partner as and when the funds are received.

To my understanding there must be a clause in the JV Agreement that share of both the partners shall not exceed the agreed percentage between them at any point of time. If you make an allotment of the shares to only one partner that the venure ration between the JV Partners will change and this will be a violation of JV Agreement.

As per section 113, share certificates have to be issued within 3 months from the date of allotment and not from the date of receipt of share application money.

You should wait for the other partners contribution to the Equity of the Company and then hold a Board Meeting for allotment of shares.

God Bless

CS Udit Sharma

Guest

Dear Udit,

Thank you, but, how about the Statutory Meeting as the last date is March 2, 2011... becoz in Form 22... it specifies that number of shares allotted against the cash received...if i am not issuing the shares ...... then holding a statutory meeting ? form 22 etc.,,, what is your take on this..

We can NOC from the other partner and move ahead for issuance of shares....

Ramalingam K

Founder & Director - Holistic Investment

21077 Points Joined October 2011

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