Share Capital - Further Issue ‑ Whether the section covers cases of further allotment out of unsubscribed portion of capital and sale of forfeited shares
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Further allotment within issued capital does not increase subscribed capital; Section 81(1) inapplicable, sale of forfeited shares excluded. Further allotment of shares from the unsubscribed portion of issued capital does not increase the subscribed capital and is treated as the first allotment for those shares, so the statutory pre emptive rights governing new issues are not applicable to such remaining issued shares. The statutory provision is also inapplicable to the sale of forfeited shares because no new allotment is necessary for their sale.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Further allotment within issued capital does not increase subscribed capital; Section 81(1) inapplicable, sale of forfeited shares excluded.
Further allotment of shares from the unsubscribed portion of issued capital does not increase the subscribed capital and is treated as the first allotment for those shares, so the statutory pre emptive rights governing new issues are not applicable to such remaining issued shares. The statutory provision is also inapplicable to the sale of forfeited shares because no new allotment is necessary for their sale.
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