13 January 2012
please provide only Sample of letter to send shareholders in consolidation of shares.
Guest
Guest
(Expert)
13 January 2012
The Board of directors of the Company is planning to make a public issue of equity shares for augmenting longterm working capital requirements of the Company. Since Company is not very old, as per SEBI guidelines, the offer will have to be made at par and that the value of share shall not be in a fraction of rupee. At present equity capital of the Company is divided into equity shares of Rs. 2.50 each. Existing shares are proposed to be consolidated into equity shares of Rs. 10. According to the provisions of section 94 of the Act, approval of the shareholders by way of Ordinary Resolution is required for consolidation of shares.
CAclubindia
