Only Intelligent can answer
Savio V Simon (Student CS) (219 Points)
29 November 2018
What are the core difference of private placement u/s 42 and preferential allotment u/s 62(1)(c)??
2 Replies
Balaji Ramalingam
(Student - CA Final)
(285 Points)
Replied 29 November 2018
go through both the sections and come back soon
kapil gupta
(217 Points)
Replied 29 November 2018
HEY simon just loved your title😆
The main difference between both is that:-
1.Pvt placement applies to all companies whereas prefrential allotment applies to and done by public co(s) only.
2.Moreover,under pvt. placement a company can issue equity shares , convertible as well as non-convertible securities
on the other hand under pref. allotment only eq..
shares and convertible sec. are allowed to be issued
3.Pvt placement limits on no. of offerees but prefrential allotment doesnt provide for such restriction.
So these are core differences there would be more.
Thanks
The main difference between both is that:-
1.Pvt placement applies to all companies whereas prefrential allotment applies to and done by public co(s) only.
2.Moreover,under pvt. placement a company can issue equity shares , convertible as well as non-convertible securities
on the other hand under pref. allotment only eq..
shares and convertible sec. are allowed to be issued
3.Pvt placement limits on no. of offerees but prefrential allotment doesnt provide for such restriction.
So these are core differences there would be more.
Thanks
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