Issue of further shares (share allotment)
Company can increase the paid share capital of at any time after incorporation by making allotment of fresh shares and by following the procedures enumerated in the Companies Act, 2013. For this purpose checking the provisions in Article of Association is required.
Our Company prepares all necessary documents and helps you to increase paid up share capital of your Company by making fresh allotments at affordable price.
Procedure for Further issue of shares to existing shareholders – Rights Issue / Preferential basis:-
- Provision in Article of Association regarding Private Placement is mandatory.
- Call Board Meeting:
- To Prepare Offer Letter
- Make Proposal for Private Placement
- Prepare list of persons to whom option will be given
- Extra Ordinary General Meeting (EGM)
- Pass SR- will be valid for 12 month
- If not completed PP in 12 Month pass another SR
- Approve Draft Offer Letter by SR
- File MGT-14with ROC
- Issue offer letter in PAS-4 within 30 days of record of name of persons:
- Prepare complete record of Private Placement in PAS-5
- File PAS-4 + PAS-5 with ROC within 30 days of issue of offer letter.
- Make Allotment of shares within 60 days of receipt of Money from the persons to whom right was given.
- Called BM for allotment of shares
- File PAS-3 with Roc within 30 days if Allotment.
- File Form MGT-14 along with Resolution pass in Board meeting for allotment of shares.
- Issue Share Certificates.