Issue of shares

This query is : Resolved

Kumar (Querist)
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23 January 2008 Dear All,

A wholly Owned Subsidiary(WOS) of foreign company wants to issue 5% of the share capitals to its one of its employee.Please state what steps required to be complied.

Thanking you,

With Best Regards,

Rakesh

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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23 January 2008 Is the employee Indian or foreign?
Is there an increase in share issue contemplated?

R.V.RAO

R.V.RAO (Expert)
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23 January 2008 Yes, a person resident in India, being an individual, who is an employee or a director of Indian office or branch of a foreign company or of a subsidiary in India of a foreign company or of an Indian company in which foreign equity holding is not less than 51 per cent, may purchase the equity shares offered by the said foreign company: -

Provided that the shares are offered at a concessional price

source:www.rbidocs.rbi.org.in

STEPS NEEDED.
1. CONSULT ARTICLES OF ASSOCIATION. IF NO PROVISION, AMEND ARTICLES OF ASSOCIATION.
2.COMPLY UNLISTED PUBLIC COMPANIES (PREFRENTIAL ALLOTMENT) RULES 2003 IF APPLICABLE.
2. ALLOTT SHARES IN BOARD MEETING
3.issue sharecertficates or transfer to demat account.
4.inform rbi as a matter of fact only.
5. file return of allotment
R.V.RAO

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Kumar

Kumar (Querist)
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29 January 2008 Dear All,

Thanks.

BR,
rakesh