TMI BlogIssue of shares on preferential basis.X X X X Extracts X X X X X X X X Extracts X X X X ..... e of any preferential offer made by a company to one or more existing members only, the provisions of sub-rule (1) and proviso to sub-rule (3) of rule 14 of Companies (Prospectus and Allotment of Securities) Rules, 2014 shall not apply.] 4 [Provided further that] the price of shares to be issued on a preferential basis by a listed company shall not be required to be determined by the valuation report of a registered valuer. Explanation.- For the purposes of this rule, (i) the expression Preferential Offer means an issue of shares or other securities, by a company to any select person or group of persons on a preferential basis and does not include shares or other securities offered through a public issue, rights issue, employee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report of the registered valuer; (v) relevant date with reference to which the price has been arrived at; (vi) the class or classes of persons to whom the allotment is proposed to be made; (vii) intention of promoters, directors or key managerial personnel to subscribe to the offer; (viii) the proposed time within which the allotment shall be completed; (ix) the names of the proposed allottees and the percentage of post preferential offer capital that may be held by them; (x) the change in control, if any, in the company that would occur consequent to the preferential offer; (xi) the number of persons to whom allotment on preferential basis have already been made during the year, in terms of number of securities as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Relatives Indian Public Others (Including NRIs) Sub Total(B) GRAND TOTAL (e) the allotment of securities on a preferential basis made pursuant to the special resolution passed pursuant to sub-rule (2)(b) shall be completed within a period of twelve months from the date of passing of the special resolution. (f) if the allotment of securities is not completed within twelve months from the date of passing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he company giving justification for the valuation; (j) where the preferential offer of shares is made for a non-cash consideration, such non-cash consideration shall be treated in the following manner in the books of account of the company- (i) where the non-cash consideration takes the form of a depreciable or amortizable asset, it shall be carried to the balance sheet of the company in accordance with the accounting standards; or (ii) where clause (i) is not applicable, it shall be expensed as provided in the accounting standards. 1 [Explanation.- For the purposes of these rules, it is hereby clarified that, till a registered valuer is appointed in accordance with the provisions of the Act, the valuation repot shall be made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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