URGENT- CANCELLATION OF ALLOTTMENT

[R Somani]

 Dear Friends,

 

Need your expert opinion on the following matter:

 

Facts of the case:

 

1. ABC Pvt. Ltd., a Company having Authorized share capital of Rs. 3,00,000/- (Equity shares 20000 @ Rs. 10/- & Preference shares 10000 @ Rs. 10/-)
2. Paid up capital as on 1st December, 2014 was Rs. 1,00,000 (Equity shares Rs. 10000)
3. Company came out with private placement of 1000 shares @ Rs. 21,000/- per share (i.e. Rs. 10/- + Premium of Rs. 20,990/-) on 10th December, 2014 and allotted shares to 2 Shareholders i.e. 500 each (which is contrary to Rule 14 (2) (c ) of Companies (Prospectus and Allotment of Securities) Rules, 2014, being less then mandatory requirement of minimum of Rs. 20,000/- on par value).

The rule is given below for your ready reference:

14 (2) (c ) the value of such offer or invitation per person shall be with an investment size of not less than twenty thousand rupees of face value of the securities;

• Company fled following forms on 8th January, 2015 which are duly approved and taken on record by ROC/MCA:

• PAS-3 ; PAS 4 & PAS 5 alongwith all required documents.

 Now, they have realized their mistake and want to cancel the forms / allotment.

Request:

Please advice, can the allotment be cancelled, if yes, then the procedure to be followed for the same.

Regards,

Somani

[R Somani]

[ACS suresh chaudhary]

Please advice how to cancel private placement of shares offered to shareholder

[Deepak Arya]

What is the mistake in this?? I did'nt get the case. 

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Thanx & Regards

ACS Deepak Arya

9716525280

[R Somani]

Kindly go through the Rule no. 14 (2) (c )

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[Jayashree Chandrasekaran]

I feel once allotments are done,cannot be cancelled.

I agree that your company has violated a rule....

Jayashree

C.JAYASHREE
PROPRIETOR
S.GANESH&ASSOCIATES
CHENNAI
98840 17120

[kanika sharma]

Please read sec- 66 , Reduction of share capital . It may serve your purpose.

Thanks & Regards

 

 CS Kanika 

 JJRSIPL

 Gurgaon

[Jayashree Chandrasekaran]

Dear Kanika,

Reduction of share capital is a very lengthy,costly procedure involving High court....and generally capital reduction is done when the company is making losses and does not have enough assets

Jayashree

[R Somani]

Thank you.  But reduction will not nullify wrong allotment of shares.

[kanika sharma]

If you want to rectify the allotment , then by making application to roc and attaching the same in form - pas 3 would automatically update the same simultaneously as it is in STP mode but if you want to cancel then , re- consider above suggestions. 

[R Somani]

We are open for:

1) RECTIFICATION or

2) Cancellation

Can u pl. Inform the procedure for rectification.

[kanika sharma]

If want to do rectification for the same then prepare all the necessary documents with new or correct allotment i.e. list of allottes, board resolution etc. along with the application made to ROC to rectify the same. 

P.F.A. application to ROC.

[R Somani]

Thank you for your quick reply and guidance.

Kindly confirm that :
1) Paid up capital was revised &
2) No penalty is levied on Company.

Regards,
Somani
0865206600

[kanika sharma]

NO, ONLY ADDITIONAL FEES CAN BE LEVIED IF FORM - PAS 3 FILED FROM PREVIOUS DATE .

[kanika sharma]

YES, WHEN YOUR FORM - PAS 3 UPLOADED , YOUR PAID UP CAPITAL WOULD BE REVISED SIMULTANEOUSLY. 

FOR MORE CLARIFICATION, CHECK MASTER DATA AFTER  UPLOADING.

[R Somani]

THANK YOU VERY MUCH.

Regards,

Somani

08652056600