FINANCIAL STRUCTURE AND MEMBERSHIP – V – ALLOTMENT AND CERTIFICATE OF SECURITIES

FINANCIAL STRUCTURE AND MEMBERSHIP – V – ALLOTMENT AND CERTIFICATE OF SECURITIES

Allotment of Shares means the act of appropriation by the Board of directors of the company out of the previously un- appropriated capital of a company of a certain number of shares to persons who have made applications for shares – Section 75

A person should agree in writing to become a member – Section 41

The Company intending to offer shares to the public for subscription by the issue of a prospectus shall, before such issue, make an application to one or more recognized stock exchange for permission for shares or Debentures to be dealt with in the regional stock Exchange – Section 73(1)

Date of opening of Subscription list – Section 72

Minimum Subscription – Section 69(1)

No shares which are offered to the public can be allotted until the minimum subscription stated in the prospectus has been subscribed and the amount payable on application has been received in cash by the Company.

Irregular Allotment –

Allotment without raising minimum subscription or without either collecting application money or collecting less than 5 percent as application money or failure to deliver a copy of statement in lieu of prospectus at least three days before allotment – Section 70  

Return of Allotment – Section 75

After allotment of shares by any company, a return of allotment in the prescribed Form 2 even if it is of a single share, must be filled with the Registrar of Companies within thirty days of the allotment.

In case of default every officer of the company who is in default.

Each Share of the Share Capital of the Company shall be distinguished with a distinct number for its individual identification – Section 83

Issue of Duplicate Share Certificate – Section 84(4)

In case of lost or destroyed or has become mutilated

Sealing and Signing of Certificate - Rule 6 (Companies Issue of Share Certificate Rules, 1960)

Share Certificate shall be issued under the common seal of the company which shall be affixed in the presence of two directors and the Secretary appointed .

Whether Share Certificate an Official Publication

No – Section 147(1) (c)

Share Warrant – Section 114 and 115

A Share Warrant is a bearer document of title to the specified shares.

In respect of fully paid shares, issue under its common seal, and with the previous approval of the Central Government, a share warrant stating that the bearer is entitled to shares specified therein. Share Warrant holder is not the registered member of Company.

All money payable by any member to the company on the shares held by him under the MOA and AOA is a debt due for him to the Company – Section 36(2)

The power to make calls is exercised by the Board in its meeting by means of a resolution – Section 292(1)(a)

Payment in advance of Calls – Section 92

No return of allotment in respect of re-issue of Forfeited Shares – Section 75(5) – No return of allotment of the shares re-issued need to be filed with the Registrar