Private Co. May further issue share by
Private Placement
- Offer or invitation shall be made to not more than 200 persons in aggregate in a financial year;
- value of such offer or invitation shall be with an investment size of not less than RS-20000/- of the face value of securities;
- offer shall be previously approved by existing shareholder by a special resolution, for each of the offer or invitation;
- a private placement letter shall be send to applicant which will be serially numbered & addressed specifically to person to whom offer is made, which shall be send to him in writing or electronic mode;
- payment to be made for subscription to securities from the bank a/c of person subscribing;
and company shall keep record of that bank account;
- Allotment of securities shall be within 60 days from the date of receipt of application monies, otherwise application monies shall be refunded within 15 days from the expiry of 60 days & if company fails,it shall be liable with interest @12%p.a;
- it shall file with ROC form PAS-3, 4 & 5.
which are:
PAS-3 return of allotment of security within 30 days of allotement.
PAS-4 private placement offer letter,
PAS-5 complete record of Private Placement.
Right Issue of Shares:
As per section-62, right shares shall be offered to
1. it's existing shareholder
2. employees under employee stock option, subject to special resolution by a company:
3. to any person, if it is authorised by a special resolution.
