Re: [Indian-CA] allotment of shares through circular resolution

[R V SECKAR]

Hello,

Practically speaking , there is no restriction in allotting shares through circular resolution

CA also does not specifically states that allotment of shares can be done only in a board meeting or  other than those which are specifically required to be passed in physical meeting only under the law, can be passed by circulation.

It depends upon the size of the company, public interest involved, size of issue etc.

Further , circular resolution allotting shares should also be regularized in the next immediate board meeting.

Hence , there is no legal bar to allot shares through circular resolution. However , this should be practiced as a last resort or in case of emergency only

Regards

R.V.Seckar

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On 9 April 2011 10:54, Shital Mandhana <shytal2...@yahoo.com> wrote:

 

Dear All, please let me know in emergency, if allotment of shares (pursuant to sanction of scheme of arrangement (merger) by High Court ) resolution can be passed through circular among BOD approving the same? if possible give me some provisions and supporting sections for the same. matter is very urgent and would be eagerly wating for all of your expert guidance. regards, Shital

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[Vivek Hegde]

Yes. I agree with Mr. Seckar.

Vivek Hegde

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