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Quick Bites - ALLOTMENT OF SHARES- COMPANIES ACT, 2013 - Series 519

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Quick Bites - ALLOTMENT OF SHARES- COMPANIES ACT, 2013 (23 rd DECEMBER, 2019) Detailed article on different class of allotments has already been published on www.csdiveshgoyal.info Allotment is one of the most common and important provisions under the Companies Act, 2013. Many sections deal with Allotment of Shares, some examples are given below. In this editorial, the author will be discussing about the common questions faced in relation to allotment of shares. List of Sections: §   Section 42 (Private Placement) §   Section 62 (Further Issue of Share Capital) §   Section 55 (Issue or Redemption of Preference Shares) Types of Allotment: §   Right Issue of Shares §   Preferential Allotment of Shares - http://www.csdiveshgoyal.info/2018/08/private-placement-of-shares.html §   Private Placement of Shares- http://www.csdiveshgoyal.info/2018/08/private-placement-of-shares.html §   Issue of shares other than cash consideration- http://www.

Acceptance of Loan before filing of 20A Allowed or not? - Series 518

Acceptance of Loan before filing of 20A Allowed or not?                                                                   MCA has come with New Section 10A inserted after Section 10 by Companies (Amendment) Ordinance, 2018 dated 02.11.2018 and same has been inserted in Companies (Amendment) Act, 2019 Extract of law: As per 10A, a company having SHARE CAPITAL incorporated after ordinance i.e. after 02.11.2018 shall not commence its business or exercise any borrowing powers unless, § A declaration is filed by the directors in e-form Form No. INC-20A within 180 days from date of incorporation of company with ROC that ‘every subscriber to the MOA has paid the value of the shares agreed to be Taken by him”.   Common questions amongst many professionals are: Q. “Whether a company can accept loan from directors, shareholders etc before filing of 20A?” Q.“Whether company can accept loan from directors for opening of bank account before