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Share Capital
in Accordance with
The Companies Act, 2013
Follow Us
http://www.techcorplegal.com
Email us: info@techcorpleg...
Main Changes in
Company’s Share Capital
http://www.techcorplegal.com
Email us: info@techcorplegal.com

Follow Us
Major Changes
● Issue of Shares at a Discount
● Issue of Preference Shares for More Than 20 years
● Issue of Shares on Pri...
Issue of
Shares

at Discount

The Companies Act, 1956

The Companies Act, 2013

Issue of shares Permitted

No shares, othe...
Issue of Preference Shares
for More Than 20 Years
The Companies Act, 1956

The Companies Act, 2013

Prohibits the Issue of...
Issue of Shares on Private
Placement, Bonus Shares and GDRs
The Companies Act, 1956

The Companies Act, 2013

No Specific ...
Notice of Alteration
of Share Capital
The Companies Act, 1956
No notice of redemption of
preference

shares

is

required ...
Consolidation and
Division of Shares
The Companies Act, 1956

The Companies Bill, 2013

Company can merge or sub

Approval...
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Main Changes in Company’s Share Capital | Shares at a Discount | Preference Shares for More Than 20 years | Private Placement, Bonus Shares and GDRs | Alteration of Share Capital | Consolidation and Division of Shares

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Main Changes in Company’s Share Capital | Shares at a Discount | Preference Shares for More Than 20 years | Private Placement, Bonus Shares and GDRs | Alteration of Share Capital | Consolidation and Division of Shares

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Main Changes in Company’s Share Capital | Shares at a Discount | Preference Shares for More Than 20 years | Private Placement, Bonus Shares and GDRs | Alteration of Share Capital | Consolidation and Division of Shares

  1. 1. Share Capital in Accordance with The Companies Act, 2013 Follow Us http://www.techcorplegal.com Email us: info@techcorplegal.com
  2. 2. Main Changes in Company’s Share Capital http://www.techcorplegal.com Email us: info@techcorplegal.com Follow Us
  3. 3. Major Changes ● Issue of Shares at a Discount ● Issue of Preference Shares for More Than 20 years ● Issue of Shares on Private Placement, Bonus Shares and GDRs ● Notice of Alteration of Share Capital ● Consolidation and Division of Shares http://www.techcorplegal.com Email us: info@techcorplegal.com Follow Us
  4. 4. Issue of Shares at Discount The Companies Act, 1956 The Companies Act, 2013 Issue of shares Permitted No shares, other than Sweat at Equity Shares, Cannot be discount subject to compliance with conditions Issued at a Discount. under Section 79 Follow Us http://www.techcorplegal.com Email us: info@techcorplegal.com
  5. 5. Issue of Preference Shares for More Than 20 Years The Companies Act, 1956 The Companies Act, 2013 Prohibits the Issue of Irredeemable Preference shares have to be redeemed Preference Shares and Preference within 20 years of issue except for the Shares Redeemable after 20 years. shares issued for prescribed infrastructure projects, provided a certain percentage of shares are redeemed annually at the option of shareholders. http://www.techcorplegal.com Email us: info@techcorplegal.com Follow Us
  6. 6. Issue of Shares on Private Placement, Bonus Shares and GDRs The Companies Act, 1956 The Companies Act, 2013 No Specific Provision for Specific Provision Introduced Issue of Shares on Private for Issue of Shares on Private Placement, Bonus Shares Placement, and GDRs exist in the GDRs in the Bill. Present Act. http://www.techcorplegal.com Email us: info@techcorplegal.com Bonus Follow Us Shares
  7. 7. Notice of Alteration of Share Capital The Companies Act, 1956 No notice of redemption of preference shares is required to be filed with ROC http://www.techcorplegal.com Email us: info@techcorplegal.com The Companies Act, 2013 A company has to file a notice in the prescribed form with the Registrar Within a Period of 30 days of redemption of redeemable preference shares. Follow Us
  8. 8. Consolidation and Division of Shares The Companies Act, 1956 The Companies Bill, 2013 Company can merge or sub Approval of the Tribunal has to divide the shares by Passing be Resolution division of shares as it results in in Meeting General effective in and changes in the voting percentage of shareholders. http://www.techcorplegal.com Email us: info@techcorplegal.com merging Follow Us

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