please let me know how shares in pvt ltd works and what are formalities to do to give some shares of the company (family or relative).do we need to register any where that how many shareholders in pvt company and detail of each shareholder to ROC ,or this is only the matter of board of directors or company .thanks in advance
pls answer somebody in detail thanks
First of all, company have to conduct a Meeting of the Board of Directors for making an allotment to any person either be a relative or unknown and then u have to intimate to the ROC in the Form 2 with regard to such allotment specifying the no. of allotees in that allotment, no. of shares alloted to them, face value and premium price if any.
In a Pvt. Company, max. limit of members is 50....
Along with Filing Form 2 with ROC as explained by Sachin for allotment of the shares, you will also have to maintain register of members for recording the details of the respective shareholders and updating the same as and when any change in the shareholding is done.
Also issue share certificates to all the shareholders.
Where the allotment of shares is for other than cash Form 3 under sec. 75(2) will have to be filed with ROC.
Sachin and Puja are right. Additionly, the information of members / shareholders is also to be submitted in the Annual Return of the company to be filed with ROC.
CAclubindia
