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Share issue

STERIN MARIYA (Student CA Final ) (39 Points)

09 February 2015

Sir,

Can shares be issued to directors at par and to other companyat premium by a private company on the same date?

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5 Replies

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 09 February 2015

- Whether it is a rights issue u/s 62(1)(a) or private placement u/s 42/ 62(1)(c)?

- What is the value of shares (book value and value as per CA certificate based on discounted cash flow method?

- What is the proposed issue price?

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STERIN MARIYA (Student CA Final ) (39 Points)
Replied 10 February 2015

It is a private placement.fairvalue is Rs. 10/- and as per valuation it is Rs. 87.5/-to directors issued at Rs.10 and to other companies at Rs. 100/-ie. Rs. 90/- premium.

shilpy aggarwal (Article) (39 Points)
Replied 10 February 2015

At the time of right issue can a a existing shareholder rennounce his right to a foreign company???

For example: In ABC pvt. ltd. Mr. A and Mr. B are the directors. company offers for right issue. Mr. A wants to renounce his rights to a foreign based company in which he is a director. Can he do so???

If yes what is the procedure??

Please reply its urgent

shilpy aggarwal (Article) (39 Points)
Replied 10 February 2015

Originally posted by : shilpy aggarwal
	At the time of right issue can a a existing shareholder rennounce his right to a foreign company??? For example: In ABC pvt. ltd. Mr. A and Mr. B are the directors. company offers for right issue. Mr. A wants to renounce his rights to a foreign based company in which he is a director. Can he do so??? If yes what is the procedure?? Please reply its urgent

shilpy aggarwal (Article) (39 Points)
Replied 10 February 2015

Originally posted by : shilpy aggarwal

Sir,

At the time of right issue can a a existing shareholder rennounce his right to a foreign company???

For example: In ABC pvt. ltd. Mr. A and Mr. B are the directors. company offers for right issue. Mr. A wants to renounce his rights to a foreign based company in which he is a director. Can he do so???

If yes what is the procedure??

Please reply its urgent

Thankyou