Shares allotment by Unlisted public companies

 

As per the Ministry of Finance Notification dated 4/12/2003 with regard to allotment of shares by unlisted Public Companies, a special resolution is to be passed and acted with in 12 months.

Accordingly special resolution was passed on 30/6/2010. What is the last date exactly within which it should be acted? i.e on or before 29/6/2011 or 30/6/2011?

 What are the provisions of the Companies Act 1956 in case of contravention ?

Replies (2)

can you pl elaborate the background....

Dear sandeep

As per Notification GSR 922E dated 4.12.2003 No issue of shares on a preferential basis can be made by a company unless authorized by its articles of association and unless a special resolution is passed by the members in a General Meeting authorizing the Board of Directors to issue the same.  The special resolution shall be acted upon within a period of 12 months.The 12 months shall commence from the date of General meeting and end on completion of 12 months thereon.In your case GM happened on 30.6.2010 and the last date is 30.6.2011.

further in explanatory statement to Notice required under section 173 the proposed date of allotment is also need to be mentioned. It seems in your case you have missed that date if it is not 30.6.2011.

I hope it clarifies your query.

rgds

sanjay Kumar Sareen

Faculty of Commerce studies,Pitampura,Delhi

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