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Unlisted public companies preferential allotment rules 2011

2893 views 4 replies

Amit Kumar Verma

CA Final CS Professional

501 Points Posted on 13 March 2013

Hi Members!!!

I want to know the applicability of Unlisted Public Companies (Preferential Allotment) Rules, 2011 in the following case:

A unlisted public limited company has received share application money from its existing members. It has neither issued any advertisement nor received any money from public.

Thanks.

Replies (4)

Akanksha Jain

Article

690 Points Posted on 13 March 2013

the rules shall be applicable..

Amit Kumar Verma

CA Final CS Professional

501 Points Posted on 13 March 2013

Thank you

But please tell me whether the said case is a case of private placement.

Akanksha Jain

Article

690 Points Posted on 13 March 2013

I am really sorry..

it is not a case of preferential allotment

Preferential allotment in simple term is allotment to a person who is not an

existing shareholder of the company against section 81. In other words

preference given to a person other than existing shareholder in case of

allotment is called preferential allotment. According to Preferential allotment is

always a kind of private placement of shares.

On the other hand if there are 5 shareholders in a company and you are allotting

further shares to those 5 existing shareholders again the same is not

preferential allotment but we can call it private placement of shares. Bcoz we are

not to public at large for this second issue.

Tapan

Student

26 Points Posted on 16 March 2013

Hi !! member's....

I want to know about the procedure to issue fully convertible debentures to an individual in case of an unlisted public limited company. Please suggest...!!!