Yogesh Shah (Managing Corporate Finance) (1051 Points)
19 July 2010Hye folks,
Before turning to my question I would like to state some of the statements :-
A) “Subscriber to MoA shall take at least one share” applicable to Public Co.
B) In some cases there is a technical difference between shareholder & member. Subscriber to MoA becomes member. It is immaterial whether share is allotted to him or not.
So, my question is – in private company, can any person subscribe to MoA without taking any share?
vivek
(CS)
(751 Points)
Replied 20 July 2010
Subscriber to MOA must take atleast one share, whether it is possible to name the person who will subscribe the MOA and in their name shares will be issued but he will hold the share on behalf of someone else like body corporates.
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 20 July 2010
Thnx Vivek for reply ....
But I would like to ask - then why it is specifically mentioned for Public Co.?
DCA would mention this for private co. also, but why they didn't amend that section?
Views of other members are also welcome !!!
Jagruti (CS)
(Service)
(1953 Points)
Replied 20 July 2010
Kindly refer to Section 13 of the Companies Act which is applicable to all the Companies and not to Public Company only.
Section 13 (4)(b) stated that "no Subscriber of the MoA shall take less than one share”.
So whether it is public or private Company subcriber has to take atleast one share.
And as stated by Mr. Vivek if promoter is a Company than any person can subcribe to MoA as a nominee to Company.
CS Vijay Daxini
(At Practice)
(732 Points)
Replied 20 July 2010
i have a que. regarding clause 2 whether it is in respect of pvt. or public not mentioned specifically i dont think so in pvt.co also any one can bcme member without subscribing to atleast 1 share and any provision against co.law in aoa n moa is void abinitio
CAclubindia
