Sneha (Company Secretary) (210 Points)
08 May 2014A Pvt Co. issued shares on 14.02.2014 and received application money between 14.02.2014 to 05.04.2014. Can it allot shares on 05.04.2014 by merely attaching the list of allottees and valuation certificate?
Whether the criteria for Private Placement / Preferential Allotment etc shall apply in this scenario?
Please help.
Best regards,
Sneha Jain
Sneha
(Company Secretary)
(210 Points)
Replied 08 May 2014
Dear Mr. Ankit,
This Pvt Company has basically entered into a Shareholders Agreement with Investors. The second round of funds have come in between 14.02.2014 and 05.04.2014 from investors. For the funds that have come in, the company is required to make allotment of shares.
If the issue of shares is made on or after 01.04.2014, the compliances relating the letter of offer etc shall apply. But since the funds started coming in from 14.02.2014 itself, can the date of issue be kept as 14.04.2014 (or earlier) whereas date of allotment shall be within 60 days of receipt of money.
I hope I am able to make the point. Please let me know your opinion
RoHaN k
(CA & CS)
(308 Points)
Replied 08 May 2014
| Originally posted by : Sneha | ||
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A Pvt Co. issued shares on 14.02.2014 and received application money between 14.02.2014 to 05.04.2014. Can it allot shares on 05.04.2014 by merely attaching the list of allottees and valuation certificate? Whether the criteria for Private Placement / Preferential Allotment etc shall apply in this scenario? |
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Shares can be alloted only on full receipt of money , apply rules for allotment for unlisted public companies. and to be allot within 60 days of receipt of money.
further erstwhile companies act 1956 did not allowed private limited company to make private placemnets but as per companies act 2013 , you can make private placements.
This may help you
Ankit
(CA, CS)
(3064 Points)
Replied 08 May 2014
Dear Sneha,
In my opinion, since only the allotment is happening post 01 April and the letter of offer etc was already issued before 31/03/2014, according to me, you can go ahead with the old compliances only and that there is no need to go for fresh compliances.
Incase you have any query..please ask
keshav Arora
(article assistant)
(33 Points)
Replied 08 May 2014
JITESH KUMAR GUPTA
(AUDITING AND ACCOUNTING ALSO FIGHTING UTTHA PATAK)
(37 Points)
Replied 08 May 2014
keshav Arora
(article assistant)
(33 Points)
Replied 08 May 2014
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 09 May 2014
In my view, share application money received upto 31.3.2014 will be governed by CA 1956 and formalities relating to letter of offer etc. will not apply. However, share application money received on or after 1.4.2014 will be governed by CA 2013 and required formalities need to be completed.
RoHaN k
(CA & CS)
(308 Points)
Replied 09 May 2014
GNL-2 only for PAS -4 ( Pvt Placement offer letter )
not for PAS-3 ( Allotment )
still you'all have to check mca site , coz e-forms are updating daily.
also download instuction kit with e-forms so as to gain better clarity.
Thanks
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 09 May 2014
Hi Sneha,
I agree with Agrawal Sir, just file PAS 3 with BR copy, List of allottees and valuation certificate.
Gurvinder Singh Sarin
(Partner)
(21 Points)
Replied 09 May 2014
VIKASH KUMAR JAIN
(Audit Executive)
(711 Points)
Replied 09 May 2014
PRIYA SINGH
(Student CA IPC / IPCC)
(21 Points)
Replied 26 June 2014
what is the procedure for allotment of shares in private limited company as per the companies act, 2013 ?
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