Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Issue and allotment of shares

Law Aspire (CS) (755 Points)

13 March 2013

Dear Members

Please give a step wise process of issue & allotment of shares by a pvt ltd company. Also mention the steps after allotment i.e the issue & allotment & delivery of share certificates?

Regards

ACS Rachit Inani

Reply
Follow
Share

1 Replies

Sneha (Company Secretary) (1594 Points)
Replied 14 March 2013

First check the authorized capital of the Company. Issued capital can never be greater than your authorized capital. (You can raise your authorized capital if required)

If raising of authorized capital is not required then call a Board Meeting. Pass the resolution for the proposed allotment. After resolution is passed, file Form 2. Get the share certificates printed in the shareholders name. The said share certificates should be signed by two directors and one authorized signatory. If you have any query, you can revert back.