TIME LIMIT FOR ALLOTMENT OF SHARES

[Vidhya]

Dear friends,

One of our client company has received funds from foreign company. Whether we have to comply companies act 2013 (within 60 days we need to allot) or FEMA Guidelines (Within 180 days from the date of receipt of funds) for allotment of shares.

a).If we follow, companies act 2013 it will come under private placement or preferential allotment

b). If we follow FEMA Guidelines, how to allot the shares either private placement or preferential allotment

If anyone handled the case, pl provide your valuable suggestions

Regards

CS.Vidhya

Company Secretary

[Nitin Choudhari]

Hello Vidhya,

Companies Act is stricter than FEMA. Hence, you have to allot within 60 days.

After allotment if there is any fractional amount left in share application money then remit it prior to 180 days.

Regards,
Nitin

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[Vidhya]

Dear Nitin,

Thank you for your reply. Have you handled any specific case..Actually we have not opened any specific account for allotment, The entire procedure for fund infusion is different.

Regards

Vidhya

[Vidhya]

Dear Sangeetha,

Thank you so much for your clarification. If the existing shareholders renounce the shares under Section 62, whether we can issue the shares to the new members under preferential allotment.

And one more query whether we need to conduct general meeting for making allotment after the receipt of funds from foreign national or before the receipt of funds.

Regards,

Vidhya

On Tue, Feb 3, 2015 at 7:44 PM, sangeetha sekar <sangee8...@gmail.com> wrote:

Dear Vidhya,

If the shares are to be allotted to the existing shareholders then make the allotment within 12 months of passing of spl resolution under Sec 62 - Preferential allotment under Companies Act,2013 and Rule 13 of Companies (Share Capital and Debenture) Rules.

If the shares are proposed to be allotted to other than existing shareholders then allotment shall be made within 60 days from the date of receipt of application money as per Sec 42 and Rule 14 of Companies (Prospectus and Allotment) Rules.

Request other professionals to kindly correct me if i'm wrong.

Sangeetha

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Regards,
Sangeetha Sekar

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[Vidhya]

Thank you Sangeetha for your valuable response

Regards,

Vidhya

On Tue, Feb 3, 2015 at 9:57 PM, sangeetha sekar <sangee8...@gmail.com> wrote:

Vidhya,

General Meeting should be convened before receipt of funds, authorising the Board to make offer for the same.

Sangeetha

[csyogan .]

all the laws of the land have to be complied with; which implies, the stricter one has to be complied with !!!

regards,
yogan.

[Vijay Raghavan]

Dear ms. Sangeetha,

U mean sh holders approval to be obtained in gm before receipt of funds for allotment of shares. This is whether for the receipt of funds from existing sh or fr on new sh holders.