Allotment of shares

[Velayutham Panchatcharam]

Dear Sirs,

Request your opinion on below issue

On 16-6-2017, Board approved ₹ 30 crore to issue shares and money has to bring into India by 30-8-2017

On 26-7-2017, received ₹ 15 crore and balance will received by 30-8-2017

Understand need to allot shares within 60 days from the date of receipt of money. But within 60 days, there is no board meeting and our board also not interested paper minutes or circular memo. Please note board meeting will be held on 30-9-2017. Such being the case, what is the procedure for allotment without any violation of law?

Regards

Panch

[DR.MARIAPPAN GOVINDARAJAN]

You may consult the practising Company Secretaries in this regard.

AI Summary

Allotment of shares: timing requirements can bar allotment if board approval or procedures are delayed, seek compliant advice.
Issue: part subscription received for an authorized share issue but the company has no board meeting within the sixty day period for allotment; enquirer asks how to allot without breaching the timing requirement when directors decline paper minutes or circulars. Reply: consult a practising Company Secretary.