ALLOTTMENT OF SHARES

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2011 DEAR ALL!!!!

Kindly advice -

Company A Ltd having paid up share capital of Rs.5 lacs is presently having 7 shareholder.

The company wants to allot further shares through private placement amounting Rs. 11 crores.

Can it allot 10 crore shares to a closely held private ltd co.?
Does it attracts holding subsidiary concept contained in sec 4 of the Companies Act 1956 ?

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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12 May 2011 The company can allot the shares. However, if the total shareholding of the private company exceeds 50%, then that company shall become the holding company.

Nayan Das

Nayan Das (Expert)
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12 May 2011 i agree with mr, kabra

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Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2011 Thank you for your quick and satisfactory reply !!!!!
Further advice -

what additional compliance are to be performed by the both the companies with regard to company law ?

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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12 May 2011 After allotment of shares, form 2 is to be submitted to RoC. Further, the holding company has to prepare and submit the consolidated final accounts after the end of each financial year.