Amit Kumar Verma (CA Final CS Professional) (501 Points)
23 April 2013Hi Members!!!
A company has accumulated the remuneration of its directors resulting into the credit balance of directors in the books of the company. Now the company wants to allot shares to its directors against such accumulated remuneration i.e. issue of shares for consideration otherwise than in cash.
I want to know the relevant procedures in this regard.
Thanks.
CA Kedar Sakhardande
(Proprietor)
(942 Points)
Replied 23 April 2013
Conduct a Board Meeting get approval at the board meeting and file Form No 2 (If the increase is within authorised capital)
If authorise capital is to be increased then convene EGM get the authorised capital increased ammend MOA (ordinary resolution ) and file form No 5 and then repeat the above mentioned procedure
regards
kedar
Amit Kumar Verma
(CA Final CS Professional)
(501 Points)
Replied 24 April 2013
Thankyou for your reply sir...
The increase is withing the limit of authorised share capital.
I want to know whether form 3 is required to be filed for the same or not.
Thanks..
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 21 May 2013
It is not a case of issue of shares for consideration other than cash. Hence Form 2 needs to be filed.
The situation would have been different if the Board would have decided at the time of appointment of the directors to issue shares against their services in lieu of remuneration.
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