Allotment of shares to existing shareholders

This query is : Resolved

Pinki Agrawal (Querist)
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09 April 2015 Sir

A Pvt ltd Co has two directors and same are the shareholders of the co.

Now the co want to allot shares to only one director. Is it possible as per new Act ?

If yes can anyone tell me the exact procedure which should i follow ?

Thanks in anticipation

CS Adnan Shaikh

CS Adnan Shaikh (Expert)
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10 April 2015 Yes, you can do it by way of preferential issue by passing special resolution.

Or you can do by rights issue (if the other shareholder renounces rights in favour of first shareholder). Rights Issue is involves less formalities compared to preferential issue.

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