Company Registration in Tirupur
Price and price band
- The issuer may mention a price or price band in the draft prospectus (in case of a fixed price issue) and floor price or price band in the red herring prospectus (in case of book built issue) and determine the price at a later date before registering the prospectus with the Registrar of companies. Provided that the prospectus registered with with the Registrar of companies shall contain only one price or the specific coupon rate , as the case may be.
- The issuer shall announce the floor price or price band at least before the opening of the bid (in case of an initial public offer) and at least one working day before the opening of the bid, in all the newspapers in which the pre issue advertisement was released.
- The sweat equity shares must be of the same class of equity shares as already issued by the company.· Issue of the sweat equity is authorized by a special resolution passed by the company; for issuing sweat equity shares, authorization in the articles of association is not a pre-condition. Further, in case of an unlisted company, the special resolution shall be passed in a general meeting only. In case of listed companies, the special resolution need not be passed in a general meeting. The 1956 Act required every company issuing sweat equity shares to pass special resolution in a general meeting.· The special resolution shall specify the number of sweat equity shares to be issued, current market price of equity shares of the company, consideration, if any, payable on such shares and the class or classes of directors or employees to whom the same is proposed to be issued.· There must be a gap of at least one year from the date on which the company is entitled to commence business before issue of sweat equity shares.