Promoter with nil shareholding!!!!

[Anju Grewal]

Dear All,

Can anyone guide me that whether a individual with no shareholding (nil) can be a promoter in a company.

Thanks & Regards

Anju

[Roshni Agrawal]

e- form 1A  includes detail  of all  promotes , for getting availability of name ,.

 It is not necessary that all promotes will be subscribers or 1st directors of the company. U may appoint other persons & the promoter who is not willing to subscribe can give NOC which is attached with e-form 1 at the time of incorporation. 

hence the promoter can have no shareholding, but he can't b subscriber .

Regards
Roshni Agrawal

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Roshni Agrawal

"Be true to urself & be less concerned with what others think of u..................
Don't accept their definition of u...., but grow into a self defination of ur own...."

[Sakshi Vaid]

dear anju ,

 

whether its a pvt co. or public co. also matters.

 

regards

sakshi

On Wed, Jan 12, 2011 at 4:00 PM, Anju Grewal <csanju...@gmail.com> wrote:

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[Anju Grewal]

Its a public co. which is going to file its DRHP.

[Vivek Hegde]

Dear Anju

I think a promoter should have at least 1 share except in a company having share capital. The situation explained by Roshni does not say a promoter need not have shares.

Vivek

On Wed, Jan 12, 2011 at 4:42 PM, Sakshi Vaid <sakshi...@gmail.com> wrote:

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Warm Regards

CS Vivek Hegde,B.com, ACS, CWA
Company Secretary in Practice
No. 405, 4th Block, 7th Cross
Koramangala, Bangalore-560034
Mob: 09019756940/09900898223

[Anju Grewal]

Actually I have seen one RHP filed with SEBI, where a promoter holds no shares in the Company. (RHP: Mid valley entertainment Ltd. filed on Dec. 30th, 2010)

[Vivek Hegde]

Dear Anju

Following extract from an article will give you some idea:

..........Instead of singling out share pledges by promoters, SEBI would do well to altogether dispense with the minimum promoter shareholding requirement imposed at the time of listing. Companies should not be forced by law to have “promoters”. The stance of regulation should be do encourage board-driven governance and discourage the promoter concept. .....................................................

But,  as of now the concept of minimum promoter holding is still there as a listing prerequisite.

Vivek Hegde

[Anju Grewal]

But Sir, what about that Red Herring Prospectus?? Even SEBI approved it. Here is the link for your kind consideration:http://www.sebi.gov.in/dp/midvalley2010.pdf

[Roshni Agrawal]

Dear Vivekji

Check shareholding pattern of LARSEN & TOUBRO LIMITED, ICICIBANK, ITC. 

ther u see promoters holding is NIL .

ths will be gud proof.

Regards

Roshni Agrawal

[Vivek Aggarwal]

Dear Anju

While it is a very rare case & does not happens generally, it can be so as Promoter is a person who promotes the Company & need not necessarily be a Shareholder.

 

Regards
CS Vivek Aggarwal

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From: Anju Grewal <csanju...@gmail.com>
To: csmy...@googlegroups.com
Sent: Wed, 12 January, 2011 4:00:12 PM
Subject: [CSMysore] Promoter with nil shareholding!!!!

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[Anju Grewal]

ohk.....thanks for ur guidance Sir and Mam. have a gud day ahead.....:-)