Shares at premium in case of pvt. Co.
Neelam
--With Best Regards
Neelam
badrinath chavan
1. Check Authorized capital, if insufficient, increase it.
2. Convene a Board meeting and approve the proposal for issue of share at premium specifying No. & nominal value of shares, Amt of Premium, other terms and conditions and draft Notice of General Meeting to pass special resolution.
3. In case of Listed entity, intimate to stock exchange. about the particulars of issue after board meeting
4. Despatch the notice of general meeting to memebers as well as stock exchange(3 copies)
5. Hold General meeting pass special resolution & forward the proceeding to stock exchange.
6. File form 23 within 30 days.
7. Allot the shares in duly convened board meeting.
8. Note that premium sholud be received alongwith the applications. In case of NRI allottes, obtain RBI approval
9. Intimate to stock exchange about allotment.
10. Transfer premium amount received to "Securities premium account".
11. File form 2 with 30 days of allotment.
12. Issue the shares & make entry in Register of Members
13. Complete other formalities as may be required by stock exchange
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Neelam
whats the procedure in case of private Company?
Neelam
Sai Associates
badrinath chavan
mann vishwakarma
A Private Company can issue shares at a premium by passing a board resolution subject to sufficient Authorised capital..
badrinath chavan
Neelam
badrinath chavan
Please note that the following companies only can issue share to the public at a premium (subject to the compliance of requirement of relating to promoters contribution )
1) Public issue by existed unlisted companies which has a pre-issue net worth of not less than Rs 1 crore in 3 out of preceding 5 years with a minimum net worth to be met during immediately preceding 2 years and the issue does not exceeds 5 times its pre issue net worth with three year track record of distributable profit out of immediately preceding five years .
2) First public issue by existing private / closely held and other unlisted companies with three record of consistent profitability out of immediately preceding 5 years and the issue size exceeds 5 times of its pre issue net worth and is issuing shares through book building process .
3) First public issue by existing company which does not have three year track record for distributable profit out of immediately preceding 5 year issuing shares only through book building process and 60% of the issue size to be allotted to QIB .
4) Infrastructure companies
5) Public issue by existing listed companies .