CS Pooja (Company Secretary) (305 Points)
24 July 2010Can any one tell me the rules for making preferential allotment with premium by Unlisted Public Company to its promoters? is there any restriction on amount of premium?
Regards,
CS Pooja
vivek
(CS)
(751 Points)
Replied 24 July 2010
There is no specified pricing criteria for Unlisted Public Companies. There is Section 81(1A) and Unlisted Public Companies (Preferential Allotment) Rules, 2003 are applicable on Unlisted Public Companies Preferential Allotment and both are silent on the issue of price except Rules say price will be determined by the Company.
So, there is no problem Company may issue Shares to promoters on the basis of price derived by them.
For you i am attaching hereith the Unlisted Public Companies (Preferential Allotment) Rules, 2003.
Regards,
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