Ashwin (Information Seeker) (155 Points)
19 October 2012Dear All,
Please clarify the following.
wheather Partly paid up equity shares can be given voting right? if yes then, are the provisions same both in pvt. ltd. company and public limited company, though i have problem in Pvt. Ltd. Company.
Regards
Ashwin
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 19 October 2012
No Voting Right Allowed to Partly paidup Shares.
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
Every Member of the Company i.e. whose name is registered on the Register of Member shall be entitle to vote.
However, in case of voting on poll, the voting rights are to be in proportion to his share of the paid up equity capital of the Company .Therefore, full voting right cannot be conferred in respect of partly paid up shares. [Ajit Singh v. DSS Enterprises P. Ltd.]
Further, section 181 provides that the Articles of the Company may provide that no member of the Company shall exercise any voting right in respect of the shares on which any call or other sums presently payable by him have not been paid or in regard to which the company has a right to lien and has exercised that right.
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 19 October 2012
please refer section 87(1) of the companies act.
it will clear your doubt
Ashwin
(Information Seeker)
(155 Points)
Replied 19 October 2012
Thanks Ms.Pooja and all others for your views, but i have still one more doubt that is, mine is a pvt. ltd. company, so can i alter the articles accordingly and give partly paid up shares full voting rights.
and if i do that will it be bypassing the provisions of law.
CA Manish
(Job)
(5264 Points)
Replied 19 October 2012
sec 87 is not applicable to pvt Co.
Therefore there is no need of complying with the propotionate voting right.
pvt co can have its own rule for voting.
SANYAM ARORA
(“It's hard to beat a person who never gives up.”)
(20173 Points)
Replied 19 October 2012
Agreed with Miss Pooja !
CAclubindia
