redeemable preference share

Ashish shah (C.A.Student) (89 Points)

16 May 2011

whether an unlisted public ltd co can issue RPS to more than 50 members...without prospectus or listing .....????

Reply
Follow
Share

2 Replies

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 16 May 2011

Originally posted by : Ashish shah
	whether an unlisted public ltd co can issue RPS to more than 50 members...without prospectus or listing .....????

Hi Ashish

In my view,

1. 50 members restriction is only for pvt company. So Public company means it will exceed that limit

2. Unlisted Public company can issue RPS. ( Refer Section 80)

3. You can issue Redeemable Preference Shares without Prospectus provided conditions are

fulfilled as per provisions of Section 149 (2). Refer the sections for more clarity.

4. If the Public company is Listed or intended to be listed,

then the filings of Prospectus or Statement in lieu of prospectus will be with SEBI

If not listed then such filings will be with ROC . ( Refer Section 55A for reference)

Other contrary views if any welcome.

Experts your views solicited.

regards

Santosh Shah

Ashish shah (C.A.Student) (89 Points)
Replied 23 May 2011

dear santosh, find out the rules for private placement also ,,,because i m confuse there....pls ask in ur circle...i need urgent help

Start a New Discussion