Prefrential allotment

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

25 April 2012 Dear Members,

Taking a situation wherein in unlisted public Company I have to allot equity shares on preferential basis to 70 shareholders.

Any offering of securities to 50 persons or more is a public offering by virtue of Section 67(3) of the Companies Act, 1956.

Therefore I am showing two EGM for passing special resolution by the members authorizing the board of directors to make such issue.

However gap between two EGM is of 15 days. Supported by shorter consent of all shareholders.

My question is am I right to follow said procedure or there is any better way to do it.

Regards,

vignesh

vignesh (Expert)
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26 April 2012 Dear Sir,

No need to conduct two egms. Just conduct one egm and get the approval for the total amount for instance Rs.50 lacs. You can issue the shares on preferential allotment through board resolution itself and you can allot 40 members in the first and the balance in the another board meeting.

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2012 Thank you for your reply.

But, as per Unlisted Public Companies (Preferential Allotment) Amendment Rules, 2011 any proposed offer shall not be made to more than 49 allottees.

Also details like name, father's name, address and occupation of proposed allottees has to mentioned in special resolution.

Regards,

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Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2012 Waiting for replies.