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Board Resolution - Issuance of Equity Shares through Private Placement

Draft Board Resolution along with Preamble to consider and approve issuance of Equity Shares through Private Placement by way of Preferential Allotment to the investor subject further to the approval of Shareholders in General Meeting by way of Special Resolution.

Chapter: Chapter III and IV

Section: 42 and 62

Rule: Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 2014 and Rule 13 of The Companies (Share Capital and Debentures) Rules, 2014

Approximate Time Saving: 1 hour

Product Information

This document consist of draft Board resolution, for issuance of Equity Shares through Private Placement, along with Preamble in editable word format making it handy for you to use and save your time and efforts

 

  

Additional Information

Section 42

(1) Without prejudice to the provisions of section 26, a company may, subject to the provisions of this section, make private placement through issue of a private placement offer letter.

“Private placement” means any offer of securities or invitation to subscribe securities to a select group of persons by a company (other than by way of public offer) through issue of a private placement offer letter and which satisfies the conditions specified in this section.

Rule 14

A company may make an offer or invitation to subscribe to securities through issue of a private placement offer letter in Form PAS-4.

Section 62

Where at any time, a company having a share capital proposes to increase its subscribed capital by the issue of further shares, such shares shall be offered to any persons. if it is authorised by a special resolution, whether or not those persons include the persons referred to in clause (a) or clause (b), either for cash or for a consideration other than cash, if the price of such shares is determined by the valuation report of a registered valuer subject to such conditions as may be prescribed.

Rule 13

For the purposes of clause (c) of sub-section (1) of section 62, If authorized by a special resolution passed in a general meeting, shares may be issued by any company in any manner whatsoever including by way of a preferential offer, to any persons whether or not those persons include the persons referred to in clause (a) or clause (b) of sub-section (1) of section 62 and such issue on preferential basis should also comply with conditions laid down in section 42 of the Act: 

Provided that in case of any preferential offer made by a company to one or more existing members only, the provisions of sub-rule (1) and proviso to sub-rule (3) of rule 14 of Comapnies (Prospectus and Allotment of Securities) Rules, 2014 shall not apply.

Attachments

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Issuance of equity shares through private placement