Allotment of share capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2010 Whether it is neccessary to get approval of shareholers for allotment of share capital if director and shareholders are same. Then it is necessary to conduct EGM

Aditya Maheshwari

Aditya Maheshwari (Expert)
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20 November 2010 Depends on type of company and authorisation by articles

Ajay Mishra

Ajay Mishra (Expert)
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22 November 2010 Hi

In case of private company, Board approval is sufficient to allot further shares. But in case of public company shareholders approvals are necessary under section 81 of the Companies Act, 1956.

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