CA Sourabh Jain (Practicing Chartered Accountant) (132 Points)
30 April 2014“Can a private limited company issue fresh share capital (within its limit of Authorised Share Capital) without going for AGM or EOGM i.e. by approval of its BOD only ?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 30 April 2014
Yes, if it is a rights issue u/s 23(2)(a) read with Sec.62(1)(a).
CA Sourabh Jain
(Practicing Chartered Accountant)
(132 Points)
Replied 30 April 2014
Vandana J Doshi
(Practising Company Secretary)
(12562 Points)
Replied 30 April 2014
Hi,
If it is not a rights issue, than prior approval of shareholders in a GM is required for issue of share capital... then you have to comply with section 42 and 62 and relevant rules.
CAclubindia
