Board ResolutionBoardSection 42Rule 14, Companies (Prospectus and Allotment of Securities) Rules, 2014

Private Placement

All companies. Private Placement is an offer of securities to a select group of persons (max 200 in a financial year, excluding QIBs and employees under ESOP). Requires Special Resolution by shareholders.

Your capital structure is the backbone every other corporate decision rests on. Section 42 is the line every share movement has to respect. What that means day to day: offer made to a select group identified by the Board, not exceeding 200 persons per financial year (excluding QIBs and Esop-scheme employees), counted separately per security type (equity/preference/debenture). Fi CTC Generator turns this into a 3-minute task you'll never have to think twice about.

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Special Resolution required from shareholders. Application money must be kept in a separate bank account. Allotment must be completed within 60 days. Form PAS-4 (offer letter) and Form PAS-3 (return of allotment) must be filed.

Section 42, Companies Act 2013; Rule 14

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