allotment of shares

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2010 Dear all, our Public comapany having only 7 members and paid-up capital of rs.7Lakh divided in share rs.10 each. authorised Capital Rs. 50Lakh.
now we want to allot additional shares of rs. 40Lakh.
whether these all additional shares can be issued to a particular member among of seven? advise in brief

Ankur Garg

Ankur Garg (Expert)
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10 November 2010 Yes...

All additional shares can be issued to a particular member among of seven. This is called preferential allotment u/s 81(1A).

Your co. is a public company so section 81 is applicable to ur co.

For preferential allotment you hv to collect prior approval of shareholders through special resolution in general meeting.

After GM file form 23 with ROC with in 30 days to register the special resolution above.