Daily Email Newsletters (Latest Updates/Articles) — Sign up for Free

Procedure for Issue of Shares at Premium

A Company planning to issue shares at premium needs to follow certain procedure, the details of which is elaborated as under:

Hold Board Meeting

(1) Pass resolution at the meeting of Board of Directors of the Company approving the proposal for issue of securities at a premium with the terms and conditions for issue of the shares.

(2) Approve the draft notice fixing the date, time, venue and agenda for the general meeting for passing of the special resolution. 

(3) Inform to the stock exchange immediately after the Board meeting. (applicable to listed cos.)

(4) Despatch the notice of the general meeting along with the explanatory statement to the members  of the Company entitled to receive the notice of the meeting and the auditors of the company  and forward 3 (three) copies of the Notice along with the explanatory statement to each of the Stock exchanges (applicable to listed cos.).

Hold the General meeting 

(5) Pass the special resolution for the issue of shares at a premium.

(6) Forward the proceedings of the general meeting to each of the Stock exchanges (applicable to listed cos.).

(7) File e-form 23 available at MCA site.

Allot Shares

(8) Allot the shares.

(9) Intimate to the Stock Exchange(s) of the allotment (applicable to listed cos.).

(10) Transfer the premium amount to the "Securities Premium Account".

(11) File e-Form No. 2 available at MCA site.

(12) Make necessary entries in the Register of Members of the Company.

No comments:

Post a Comment