Preferential issue by listed company

[shailesh goyal]

Hi All 

As we all aware that a Public Ltd. Company can make preferential issue only by passing special resolution through its shareholders u/s 81(1A). 

In this regard, my query is whether company can receive share application money before the date of very first board meeting considering preferential issue or it will receive share application money only after obtaining shareholder's approval?

What if share application money is lying in the balance sheet as on date and we intend to allot the same through preferential allotment?

Regards

Cs Shailesh Goyal 

[VIKAS GUPTA]

Hello,

 

In my opinion, you can receive share application money before the first Board Meeting in which the Company will decide to allot shares by preferential basis...

 

But just remember the recent circular or guidelinese regarding the time limit within which the Company will have to allot shares i.e. allotment within six months of receiving share application money...

--
************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
 
Find eNewsletters of ICSI Mysore at: www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx

--
THANKYOU
CS VIKAS GUPTA
Assistant Company Secretary
Havells India Limited
9953620278
http://www.vikas1052.blogspot.com/

[balaram desina]

Dear Shailesh,

 

Company has to allot the shares within 60 days from the date of receipt of share application money as per Unlisted Public Companies (Preferential Allotment) Amendment Rules, 2011 

 

 

Company can get the application money before considering the proposal for allotment in Board. Once the application money received then need to comply the above said rules or other wise required to pay Interest at the rate of 12% Per anum on application money.

 

 

Regards,

 

CS. D. Balaramakrishna

91-9393856235

 

 

 

On Sat, Aug 4, 2012 at 10:22 AM, shailesh goyal <shail...@yahoo.com> wrote:

--

************************************************
Mail your comments, feedback and suggestions on CSMysore to Moderator: datta...@gmail.com and Manager: vivekhe...@gmail.com
 
Find eNewsletters of ICSI Mysore at: www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx

--

Thanks & Regards

CS.D.Balaramakrishna

MBA,LLB,MA(HR),ACS
Company Secretary
91-9959850156, 9393856235

 

This e-mail and any files transmitted with it are for the sole use of the intended receipnt(s) and may contain confidential and privileged information.

If you are not the intended receipient, please contact the sendor by reply e-mail and destroy all copies of the original message.

Any unauthorised review, use, disclosure, dissemination, forwarding,printing or copying of this email or any action taken in reliance on this e-mail is strictly prohibited and may be unlawful.

 

 

[shailesh goyal]

Dear Mr. Vikas and D. Balaramakrishna  

Thanks for your prompt reply. but i suppose you dint get my query. I just wanted to confirm whether company can take share application money before shareholder's approval u/s81(1A) because point is that when approval from shareholder is pending for preferential ISSUE (not allotment), how could company take share application money?

now on this point pls suggest What if share application money is lying in the balance sheet as on date and we intend to allot the same through preferential allotment?

 

Regards

Cs Shailesh Goyal

[balaram desina]

Dear Shailesh,

 

 

No where in the act saying that company has to take prior approval of Board or Members for receiving of application money. 

 

 

So u can receive the application money before the approval of Board for preferential allotment. Once application money received then u need to comply the rules for allotment.

 

 

 

Regards,

 

CS. D. Balaramakrishna

91-9393856235 

[yoganand l]

as per the revised unlisted public co.... rules, application money has to be put in a seperate bank account
how can this be complied if money is received before passing of the resolutions....


regards,
yogan

[balaram desina]

Dear Yogan,

 

 

Normally Company maintain a seperate Bank account for Application Money. Once the funds credited to such Bank account, then u may allot the shares within the time period. We use to follow the same procedure for allotment of shares in our group.

 

 

 

 

Regards,

 

CS. D. Balaramakrishna