What are the provisions of Companies Act regarding allotment of shares?

According to Section 69(1) of the Companies Act, no allotment can be made by the company until the minimum Subscription has been received. In accordance with Section 69(3), the amount payable on each share should not be less than 5 per cent of the Nominal Value of the shares.

What are the conditions regarding 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 provisions of Companies Act 2013?

What are the provisions of Companies Act, 2013 on declaration of dividend?

The provisions under the Companies Act, 2013 provides that no dividend shall be paid except through cash and where the dividend is payable in cash, it can be paid by way of cheque, warrant or by any electronic mode to the shareholder who is eligible to receive the dividend.

What are the provisions of Companies Act 1956?

Regulation of Companies

3.2. 1 The Companies Act, 1956 empowers the Central Government to inspect the books of accounts of a company, to direct special audit, to order investigation into the affairs of a company and to launch prosecution for violation of the Companies Act, 1956.

ALLOTMENT

What is allotment of shares as per Companies Act 2013?

The process of appropriation of a certain number of shares and distribution among those who have submitted the return applications of shares is known as allotment of shares. Companies Act 2013 incorporated therein forms allotment of shares that are listed on NSE and BSE or any other stock exchanges in India.

What are the requirements of an allotment?

What are the three method of allotment of shares?

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

What is Section 185 of Companies Act, 2013?

Under Section 185 of the Companies Act, 2013, the company cannot provide loans directly or indirectly, including any loans represented by credit cards: To any of its directors. To any other person, the director is interested in. Provide security in respect of loans taken by the director or any such person.

What is Section 186 of Companies Act, 2013?

Section 186 of the Companies Act, 2013 provides for the loans and investments that can be made by a company. It states that a company can make investments through more than two layers of investment companies.

Is Section 186 of Companies Act, 2013 applicable to private company?

Section 186(1) shall not apply on a Specified IFSC public and private company.

Is section 135 applicable to all the companies?

Yes, the CSR provisions apply to a company registered for a charitable purpose under Section 8 of the Companies Act, 2013. Section 135(1) of the Act states that every company having the specified net worth, turnover, or net profits must establish a CSR committee.

How do you allot shares in a company?

Which of the following was not a provision of the Act of 1956?

This discussion on Which of the following was not a provision of the Act of 1956 passed in Sri Lanka?[2010 (T-1)]a)Sinhala was recognised as the only official languageb)Buddhism was to be protected by the statec)Provinces were given autonomyd)Sinhalas were favoured in government jobsCorrect answer is option 'C'.

What is Section 62 of Companies Act, 2013?

➢ Section 62(1)(a) of the Companies Act, 2013 states that company making right issue should send a letter of offer. ➢ No prospectus is required for 'right issue' to existing members, even if the members have right to renounce the right to a third person, who may or may not be a member.

How new Companies Act, 2013 is different from Companies Act 1956?

In Companies Act 1956, only public financial institution, public sector banks or scheduled bank with main object of financing were allowed to issue there shelf prospectus but now Companies Act 2013 provides that the government shall prescribe the types of companies that can issue shelf prospectus.

What are the statutory provisions governing declaration of dividend and payment of dividend?

According to the provisions of section – 123(3), Board of directors of a company may declare interim dividend during any financial year, out of the profits made by the company during such financial year or out of previous year undistributed profits (subject to Companies (Declaration and Payment of Dividend) Rules, 2014 ...

What are the legal provisions relating to audit in the Indian Companies Act, 2013?

Examine the following: “Section 139(1) of the Companies Act, 2013 provides that every company shall, at the first annual general meeting appoint an auditor who shall hold office till the conclusion of its sixth annual general meeting”. HINT: Refer Section 139(1) of Companies Act, 2013.

What is Section 123 of Companies Act, 2013?

“No company shall declare dividend unless carried over previous losses and depreciation not provided in previous year or years are set off against profit of the company of the current year.”