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Minimum time gap

Nishtha (A) (31 Points)

24 April 2010

What is the minimum time gap required to be maintained between increase in authorised capital and allotment of shares in case of a private company?

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4 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 24 April 2010

According to me immediately after passing shareholder resolution in the GM for increase in authorised capital you may hold a board meeting for allotment of equity shares.

However uploading of form 2 for allotment would be subsequent to the approval of form 5 for increase in authorised capital.

Thanks

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Neeta (Finance) (345 Points)
Replied 24 April 2010

yes, as always , the comment by the eminent member is perfect.

der isn't any statuatory time gap between issue and allotment. The gap required is that of procedurals .

as said first form 5 need be approved to upload form 2 . but the dates can be like EGM date 2day for increase in AC and BM date 2mrw for allotment . But remember form5 if gets rejected u may be required to make changes in dates. depends on ur case .

but u can be sure on.. that der isn't min gap required by law.

CS MOHIT SALUJA (PRACTICING CS Jalandhar 9914558709) (5155 Points)
Replied 17 May 2010

Dear, there is no time gap in allotting the shares to the public after increasing the authorised capital. once the authorised capital is increased i.e. being form 5 approved by the concerned registerar of societies, u may pass the board resolution for allottment of shares.