Exemptions to pvt companies

This query is : Resolved

Parameswaran V (Querist)
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08 June 2015 SECTION 62 (2) OF CA 2013 PROVIDES THAT (2) The notice referred to in sub-clause (i) of clause (a) of sub-section (1) shall be despatched through registered post or speed post or through electronic mode to all the existing shareholders at least three days before the opening of the issue.

But the exemptions given to pvt companies provides that Provided that
notwithstanding anything
contained in this sub-clause
and sub section (2) of this
section, in case ninety per
cent. of the members of a
private company have given
their consent in writing or in electronic mode, the periods lesser than those
specified in the said sub clause
or sub-section shall apply.

whether it means that offer letter can be give through hand delivery?

Pratik Shah

Pratik Shah (Expert)
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09 June 2015 No. As per section 62(1)(i), the offer should be open for atleast 15 days. And as per 62(2), the offer letter should be dispatched atleast 3 days before opening of offer.

Now as per Amendment, it says 'period lesser than those specified'. Hence, as per amendment, the company can open offer for less than 15 days and the company can dispatched offer letter less than 3 days before opening of offer.

This amendment has nothing to do with mode of delivery of offer letter.

I hope this helps.

Pratik Shah

Pratik Shah (Expert)
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09 June 2015 But this amendment is not yet notified. Hence, you need to wait for this exemption till the notification is published in official gazatte.

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Parameswaran V

Parameswaran V (Querist)
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12 June 2015 ok
thanks for the reply