Application form - issue of shares
This query is : Resolved
02 September 2013
Sir,
what does the first applicant, second applicant and third applicant stand for in share application form for issue of shares.
Are they joint holders or nominees of share.
advice
what does the first applicant, second applicant and third applicant stand for in share application form for issue of shares.
Are they joint holders or nominees of share.
advice
02 September 2013
Dear Sakshi,
They are joint holders.
Nomination is to be filed separately
They are joint holders.
Nomination is to be filed separately
03 September 2013
thank you for reverting Sir.
does act says anything regarding this?
does act says anything regarding this?
03 September 2013
You are welcome Sakshi...please dont address me a s Sir and all..even in the previous post you did so...
I am a fresher only...
yes..the second and third holders are joint holders. whereas nomination is covered under sections 10A and 109B of the companies act 1956.
also, if you have any further queries...please feel free to ask
I am a fresher only...
yes..the second and third holders are joint holders. whereas nomination is covered under sections 10A and 109B of the companies act 1956.
also, if you have any further queries...please feel free to ask
03 September 2013
Sure, Ankit. i appreciate.
My concern is that my application form had first applicant, second applicant and third applicant.
Though almost 180 first shareholders signing it were not aware that the second and third signee will be joint holders.
Now, in case of proxy forms for AGM, i believe i require signatures of all 3 signing holders. hw to justify since act is silent on this issue
My concern is that my application form had first applicant, second applicant and third applicant.
Though almost 180 first shareholders signing it were not aware that the second and third signee will be joint holders.
Now, in case of proxy forms for AGM, i believe i require signatures of all 3 signing holders. hw to justify since act is silent on this issue
03 September 2013
No Sakshi,
There is no need for all the holders to sign the proxy form. Infact, it is the first holder who has the right to vote at the meeting. Hence, only the first holder has to sign the form
There is no need for all the holders to sign the proxy form. Infact, it is the first holder who has the right to vote at the meeting. Hence, only the first holder has to sign the form
03 September 2013
Ankit, i believe it is more of a practice. though i have read it at so many places that all joint holders should sign the proxy form.
Since Act does not specify anything in this regard, there should be not harm in getting signature?
check this link
https://www.caclubindia.com/experts/voting-at-egm-through-proxy-1395979.asp#.UiWKY9I3Da8
Since Act does not specify anything in this regard, there should be not harm in getting signature?
check this link
https://www.caclubindia.com/experts/voting-at-egm-through-proxy-1395979.asp#.UiWKY9I3Da8
03 September 2013
No no…all the holders need not sign…
Since only the Primary holder has a right to vote at the AGM.
Even the annual report and the notice and the proxy form, if you observe is addressed only to the first holder, since only he has a right to vote.
This is practical also, since, if all the holders are allowed to cast their votes , there may be different voting on the same shares.
Am sure about this position…
Only the one who has the right to vote can sign. Hence, only the first holder has to sign.
You can have a look at the proxy forms of bluechip companies such as tata, L&T etc
Since only the Primary holder has a right to vote at the AGM.
Even the annual report and the notice and the proxy form, if you observe is addressed only to the first holder, since only he has a right to vote.
This is practical also, since, if all the holders are allowed to cast their votes , there may be different voting on the same shares.
Am sure about this position…
Only the one who has the right to vote can sign. Hence, only the first holder has to sign.
You can have a look at the proxy forms of bluechip companies such as tata, L&T etc
03 September 2013
Ankit, i understand that the voting of senior holder (as per the name in the register) should only be taken into consideration.
however, what provision should i refer if the fact we are talking about is legally questioned?
Article 57 of table A has also not been adopted verbatim by the company
however, what provision should i refer if the fact we are talking about is legally questioned?
Article 57 of table A has also not been adopted verbatim by the company
03 September 2013
Sakshi,
As you said, this is mentioned in Table A.
If the same has not been adopted verbatim, and there is no restrictive cause in the AoA, then the position as I said continues.
Otherwise, you will have to follow the AoA.
However, as per the general rules, not only in a company, but even in the other voting powers (eg. Co-owned shares of a society), it is only the first holder who can vote.
Also, as I said it is practically not possible to allow all the joint holders to cast their votes separately.
but what does your AoA say?????
As you said, this is mentioned in Table A.
If the same has not been adopted verbatim, and there is no restrictive cause in the AoA, then the position as I said continues.
Otherwise, you will have to follow the AoA.
However, as per the general rules, not only in a company, but even in the other voting powers (eg. Co-owned shares of a society), it is only the first holder who can vote.
Also, as I said it is practically not possible to allow all the joint holders to cast their votes separately.
but what does your AoA say?????
03 September 2013
my article says in case of more than one joint holder attending the meeting, one of the persons whose name stands first in the register shall be counted for vote. however for proxy it remains silent.
Ankit, am not counting second and third holders for vote if first is there. pls understand, am just asking for a legal ground coz here practice is to refer something in writing. am just looking for that since my AOA is silent on proxy.
Ankit, am not counting second and third holders for vote if first is there. pls understand, am just asking for a legal ground coz here practice is to refer something in writing. am just looking for that since my AOA is silent on proxy.
03 September 2013
Then Sakshi,
If that is what your articles say, then the case is crystal clear.
The section 176 says, that the PERSON ENTITLED TO VOTE can appoint a proxy. Now in your case,the person entitled to vote, is the person whose name stands first in the register. That is to say, the first holder.
Now, as per your articles, only if the first holder is entitled to vote, only he can appoint a proxy and no one else can do so.
if still there is a doubt, please tell
Moreover, this part need not be clarified in the AoA since, this is already included in the companies act 1956.
If that is what your articles say, then the case is crystal clear.
The section 176 says, that the PERSON ENTITLED TO VOTE can appoint a proxy. Now in your case,the person entitled to vote, is the person whose name stands first in the register. That is to say, the first holder.
Now, as per your articles, only if the first holder is entitled to vote, only he can appoint a proxy and no one else can do so.
if still there is a doubt, please tell
Moreover, this part need not be clarified in the AoA since, this is already included in the companies act 1956.
03 September 2013
You are welcome…but hope you are satisfied with the reply…
If you have any further query..please ask
If you have any further query..please ask
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