Issue of warrant by a pvt. limited co having share capital

This query is : Resolved

Prabhat Kumar Agarwal (Querist)
Follow

12 March 2012 Dear Expert,

Please Let me know whether a Pvt. Limited Company having share Capital can issue Share Warrants ? If yes, to what extend and procedure for same. Whether Share Warrant holders are members of the Company? What are their rights & Preveilages ? Whether they have voting rights in AGM as well as EGM ?

Ajay Mishra

Ajay Mishra (Expert)
Follow

13 March 2012 Hi

Yes a private company can issue warrants under section 81(1A) of the Companies Act, 1056. subject to AOA of the Company. However the provision of section 81 will not apply to private company.

After allotment of warrants but before conversion of warrants into shares they have no voting rights on any AGM or EGM.

Regards