21 May 2011
Dear Sir, Is it legally valid if the promoters itself subcribed 90 % of issued share capital as per prospectus, if a company has not received the minimum subscription from public? Ex: M/s.Jk Ltd incorporated with 1 Crore share capital.But issued share capital as per prospectus for Rs.50 Lakh.The promoters of Jk Ltd has taken the shares for Rs.49 Lakh. Is it legally valid? Sebi will accept the Jk Ltd as listed company.
21 May 2011
In case of listed company the company must comply with the listing agreement of minimum public shareholding otherwise it will not be treated as listed.
CAclubindia
