As per section 219 of the companies act, 1956 A copy of every balance-sheet (including the profit and loss account, the auditors' report and every other document required by law to be annexed or attached, as the case may be, to the balance-sheet) which is to be laid before a company in general meeting shall, not less than 21 days before the date of the meeting, be sent to every member of the company.
So it is mandatory to provide the above mention docs to shareholders.
08 July 2010
No shares of private company cannot be listed on stock exchange.
The defination of private company as oer section 3 of companies act is (iii) "private company" 5[means a company which has a minimum paid-up capital of one lakh rupees or such higher paid-up capital as may be prescribed, and by its articles,-]
(a) restricts the right to transfer its shares, if any;
(b) limits the number of its members to fifty not including-
(i) persons who are in the employment of the company, and
(ii) persons who, having been formerly in the employment of the company, were members of the company while in that employment and have continued to be members after the employment ceased; and
(c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the company;
So u cannot invite to public to subscribe in shares and also the members should be restricted to 50. How can that be possible?
11 July 2010
Sir i dont think it is mandatory to issue shares to public to get listed on stock exchange.
As per companies Act it has been mentioned (section 73)every company wishing to issue the shares to public shall get its shares listed.
But no where it has been mentioned that for listing,the issue of shares is mandatory.
And also if you refer BSE website as per the minimum requirements given for listing it has been nowhere mentioned that the private Company shares cannot be listed.
13 July 2010
sir why the transfer of shares cannot be restricted on stock exchange ?
If you consider the shares that are subject to lock-in (for example promoter shares) which are not transferred for a certain period,indirectly indicates restricting the transfer of shares.
So, when you can restrict the transfer of shares as specified above then why not it is possible in the case of private limited Companies and why cant restrict the number of share holders to less than 50.
13 July 2010
Then in the end why do you want to list the company? You cannot sell your shares. So what is the use of this if no trading can be done.
Also only the promoters shares are ususally in lock in, not all. ALso compulsory 25% public shareholding is needed in case of listing. How can you control them to not sell the shares.
After the lock in period is over which is say around one year everyone can sell their shares freely. So how would u control that?
You cannot stop every shareholder to not sell the shares and if u can stop them from selling them what is the use of listing.
So hypothetically u are listed but no one can sell ur shares as the right is restricted. So in all there is no volumne of shares traded. So what will you do by listing the shares.
It will be like u have a cake but cannot eat it.
And so please do not waste further time in a useless debate of listing a private limited company as the same cannot be listed in any circumstances.
And if u want to get the company listed convert it to a public limited company and then list.
IT IS IMPOSSIBLE TO LIST A PRIVATE LIMITED COMPANY. YOU CAN CONTACT BSE OR SEBI IF YOU WISH ANY FURTHER CLARIFICATION OTHER THAN ABOVE.
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