What is the time limit for allotment of shares?

When can shares be alloted?

Shares cannot be allotted unless at least so many amounts have been subscribed and the application money, which must not be less than 5% SEBI may decide the various percentage of the nominal value of the share, has been received in by cheque or other instruments.

What is the time limit for issue of a share certificate?

The time limit to issue a share certificate on the allotment of shares is of maximum 2 months.

What are the condition for allotment of shares?

Minimum of 5% of the face value of shares should e taken by company as application money. i.e. money payable with application of shares. (3) Minimum subscription: Allotment of shares cannot begin if minimum subscription of 90% of issued capital is not collected.

What are the requirements of an allotment?

The following rules regarding allotment of shares are noted:

  • (a) Application Form: …
  • (b) Offer and Acceptance: …
  • (c) Conditional offer and Acceptance for ‘Offer’: …
  • (d) Proper Authority: …
  • (e) Reasonable Time: …
  • (f) Fictitious Name: …
  • (a) Minimum Subscription: …
  • (b) Application Money:
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What is subsequent allotment of share?

A subsequent offering is the issuance of additional stock shares after a company goes public through an initial public offering. … Dilutive subsequent offerings increase the number of outstanding shares while non-dilutive offerings create no new shares in a company.

Do shareholders need to approve allotment of shares?

Registration of an allotment is important. The new shareholder(s) will not hold the allotted shares or be a member of the company, until the registration process is complete. any shareholder resolutions (passed at a meeting or using the written resolution) required for the allotment.

What is share time limit?

A Company having share capital: The Company shall not register transfer of securities of the Company or member’s interest in the Company other than beneficial owners without a proper instrument of transfer within a period of 60 days from the date of execution.

What is the date of issue of shares?

Share Issue Date means the date when the class A shares of the Company are issued, as detailed in the Prospectus.

What are the three method of allotment of shares?

MODE OF ALLOTMENT OF SHARES:

to public through prospectus (public offer) through private placement. through a rights issue or a bonus issue.

What is the minimum subscription for allotment?

(2) The amount so stated in the prospectus shall be reckoned exclusively of any amount payable otherwise than in money, and is in this Act referred to as ” the minimum subscription “. (3) The amount payable on application on each share shall not be less than five per cent of the nominal amount of the share.

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Can we allotted shares before receipt of money?

1. Allotment shall be done within 60 days of receipt of application money. 2. If Allotment is not done within 60 days then refund the whole application money within next 15 days.