\t
Twelve Months from passing Special Resolution<\/p>\n
OR<\/strong><\/p>\n\tSixty Days of receipt of application money.<\/p><\/div>\n\n\n\n
- Valuation Report: <\/strong>the share price at which the securities are issued should not be less than the price determined based on the valuation report of a registered valuer.<\/li><\/ul>\n\n\n\n
- Application form:<\/strong> Application form accompanied along with offer letter shall be sent to every allottee on their registered address through electronic mode or speed post within 30 days of EGM.<\/li><\/ul>\n\n\n\n
- A further issue:<\/strong> Company cannot make an additional issue of any new securities or share until and unless the allotment is completed concerning a previous offer or invitation.<\/li><\/ul>\n\n\n\n
- Value of Offer:<\/strong> Company cannot make an offer of more than INR 20000 of the face value of security to per person. <\/li><\/ul>\n\n\n\n
- Separate bank account:<\/strong> the opening of a separate bank account is mandatory in case of Preferential Allotment. Application money received for the subscription of shares shall be kept in a separate bank account.Moreover, it should not be used for any other purpose except Allotment.<\/li><\/ul>\n\n\n\n
<\/span>Procedure for Preferential Allotment<\/strong><\/span><\/h2>\n\n\n\nFollowing is the step by step procedure for the\ncompany to conduct Preferential Allotment:<\/p>\n\n\n\n
- Call board meeting:<\/strong> Company shall call the board meeting by sending 7 days’ notice to the directors. Attach the agenda, notes to agendas and draft resolution which has to be passed in Board Meeting with the notice.<\/li><\/ul>\n\n\n\n
- Hold the board meeting:<\/strong> a quorum of the meeting should be check before conducting the meeting. In a board meeting pass the Board resolution for the approval of the offer letter and issue the notice of General Meeting. And with that list of Allottees & draft offer letter in PAS-4 shall be prepared for the approval in general meeting. <\/li><\/ul>\n\n\n\n
- Hold EGM:<\/strong> Call and convene the extraordinary general meeting and pass the necessary special resolution for the approval of the following:
- Offer Letter in form PAS-4<\/li>
- Preferential allotment of shares<\/li><\/ol><\/li><\/ol>\n\n\n\n
- Circulate offer letter:<\/strong> offer letter in form PAS-4 along with application number shall be circulate to Allottees within 30 days of passing SR either in an electronic mode or through registered\/speed post.<\/li><\/ul>\n\n\n\n
- E-filing:<\/strong> File the necessary form MGT-14 for the approval of ROC within 30 days of passing a special resolution. Along with the filing of GNL-2 with two necessary attachment of PAS-4 (For offer letter) and PAS-5 (Complete details of Private Placement) as a part of this form GNL-2 <\/li><\/ul>\n\n\n\n
- Call last board meeting:<\/strong> after receiving the application money, call the board meeting for passing the necessary resolutions for the approval of the following agendas:
- Allotment of shares<\/li>
- Issue of share certificate<\/li>
- Authorization to 2 people for signing the share certificate<\/li><\/ul><\/li><\/ul>\n\n\n\n
- PAS-3: <\/strong>File the necessary form PAS-3 with the registrar of the company and attach the necessary attachment such as a list of the allottee and board resolution for allotment of shares.<\/li><\/ul>\n\n\n\n
- Issue share certificate:<\/strong> issue the share certificates in form SH-1 to the subscriber within 2 months of the date of allotment. <\/li><\/ul>\n\n\n\n