• Filter Your Search
            
       
 
Notifications
(0)
Circulars
(0)
Orders
(0)
News
(0)
Queries
(0)
No updates found in last 7 days.
Notifications|Circulars|Orders|News|Queries


Q & A

 
2166 Views 2 Ans

If a Private Limited Company proposes to issue further shares to persons other than its existing members or partly to existing members or partly to other on preferential basis u/s. 62(1)© of Co. Act, 2013, then should company need to comply the provisions of section 42 read with rule 14 of Companies (Prospectus and Allotment of Securities)Rules, 2014 ? Because as per definition of Private Company u/s. 2(68)(3) prohibits any invitation to the public to subscribe for any securities of the company.

Section 62- Further issue of share capital.

Posted By: Vasant patel 9 year(s) ago

This question has been closed if you want to answer,you have to re-open.


    zaffar

Every preferential issue of shares or other convertible securities under section 62 of CA, 2013 is necessarily a private placement and has to comply with section 42 of CA, 2013 read with Relevant Rules. However private placement of NCD, or other non convertible securities, section 62 is not applicable and hence no valuation is required to be done. Hope I answer the question.

  • Comment
  •   Comment (1)

Expert    Ankit Singhi

In the cited case private company can issue shares to any other person) other than its existing member provided the limit of members shall not exceed 200 under private placement i.e. sec 42 or on preferential basis u/s. 62(1)© as the case may be.

  • Comment
  •   Comment (1)

Recently Active Member

Recently Active Member

Pramod Prabhudesai
B D Jokhakar & Co

Post Your Question
My Q&A
 


Topic

Sections

About Q&A

Q & A is a unique platform to get your answers. You can create questions by topics or sections for easy identification of your query . You get various alerts to keep you connected and can also search your query.


So keep posting and stay connected
#
Companies Act 2013/1956
Decoding the New Act
Resource Center
My Section
Information Cafe
Calculators


COPYRIGHT NOTICE: All information and material posted in this website (including but not limited to text, audio, video or graphical images), are subject to copyrights owned by Corporate Professionals eSolutions Private Limited, its affiliates and associates. Any reproduction, retransmission, republication, or other use of all or part of this document is expressly prohibited, unless prior permission has been granted by Corporate Professionals eSolutions Private Limited. All other rights reserved.

© Corporate Professionals eSolutions Pvt Ltd. | All Rights reserved
Scroll