Irregular Allotment

 Dear Sir/Madam,

I have a query.

Suppose if a Company has allotted shares to NRI against foreign remittance on 1st Jan 2008. FC GPR was filed with RBI and Form 2 with RoC.

Later if it is discovered that that allotment was made at a price of Rs. 10/- whereas the NAV of the shares of the Company as per CA Certificate (CCI Guidelines) was Rs. 35/-Now, Can I cancel that Allotment in a Fresh Board Meeting? Will that amount to reduction of Capital? How would that be given effect in the Audited Accounts already prepared and the one to be prepared in future? Is there any way out? 

Replies (2)

Hi

If shares are issued in a manner prohibited by foreign exchange regulations, the issue would be invalid and void and confer on the allottee no title whatsoever to the shares.

 

Originally posted by :CS HARDIK
" Cant w ractify it legally? "

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