Preferential allotment: defines convertible instruments and disclosure requirements, and clarifies promoter and control for unlisted companies. Preferential allotment covers allotment of shares or instruments convertible into shares, including hybrid convertibles, under subsection (1A) of section ... Summary
Preferential allotment: defines convertible instruments and disclosure requirements, and clarifies promoter and control for unlisted companies.
Preferential allotment covers allotment of shares or instruments convertible into shares, including hybrid convertibles, under subsection (1A) of section 81 of the Companies Act, 1956; proposed recipients' name, father's name, address and occupation must be stated in the members' resolution, and the number of recipients must comply with the limit in the first proviso to subsection (3) of section 67. "Promoter" includes those in overall control and those who hold themselves out as promoters, with promoters of a corporate promoter deemed promoters; "control" includes rights to appoint a majority of directors or to control management or policy, including via shareholding, management rights or shareholders/voting agreements.
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