Allotment of Shares
- Art Teacher
- London, UK
- 5-7 Hrs
The Allotment of Shares is a crucial legal process through which a company issues shares to its investors—whether promoters, private buyers, or the public—providing them with official ownership in the business. Governed by the Companies Act, 2013 and other applicable regulations, this process determines who receives shares, at what price, and under what conditions. Share allotment may take place at the time of incorporation or later through methods such as private placement, rights issue, bonus issue, or public offers. A company cannot simply distribute shares informally; it must comply with strict legal requirements including passing board resolutions, filing the Return of Allotment (Form PAS-3) with the Registrar of Companies (ROC), and updating the register of members. At Aarthika Globcorp Solutions, we provide expert assistance with Share Allotment Services in India, ensuring seamless compliance, accurate documentation, and hassle-free execution so businesses can focus on growth while staying legally secure.
- Board Resolution for issue & allotment of shares
- Share Application Forms from investors
- List of Allottees with details (name, address, PAN, number of shares)
- Shareholders’ Approval (if required, e.g., special resolution for private placement)
- Valuation Report from a registered valuer (in certain cases)
- Share Certificates
- Form PAS-3 (Return of Allotment) with attachments
- Updated Register of Members (Form MGT-1)
- Receive Share Applications
- Hold Board Meeting
- Issue Share Certificates
- File Form PAS-3 with ROC
- Update Statutory Registers
Valuation by a registered valuer is mandatory for preferential allotment and private placement, but not for rights issue to existing shareholders.
PAS-3 (Return of Allotment) must be filed with the Registrar of Companies within 30 days of allotment.
Shares cannot generally be allotted at a discount; any issue at a discounted price is void under section 53 of the Companies Act, except for sweat equity.
Shareholder approval is required for allotment, especially under preferential allotment and private placement, usually by passing a special resolution.
Yes, filing of PAS-3 (return of allotment) is required even for shares allotted through a rights issue.