prakash (Company Secretary) (1352 Points)
01 May 2014Dear Readers'
Under Companies Act, 2013, Can Board of Director of private limited company allot shares to existing shareholders or other persons without approval of members.
By going through section 42 and 62 of Companies Act, 2013, i understand that private company must get approval of members to allot any kind of shares in company. comments are solicited.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 01 May 2014
Board has power to issue shares on rights basis u/s 62(1)(a). However, special resolution will be required in case of preferential allotment u/s 62(1)(c).
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 01 May 2014
Board has power to issue shares on rights basis u/s 62(1)(a). However, special resolution will be required in case of preferential allotment u/s 62(1)(c).
Vaiyapuri kannan
(V.P.FINANCE & COMPANY SECRETARY)
(274 Points)
Replied 05 June 2014
Normally , the Subscriber to MA should take some share while signing MA as per old act ,How this old formal thing has been accommadated in the new law
CAclubindia
