04-15-2010, 09:41 PM
Rule 3 of Companies (Issue of Capital)Rules 1996 deals with the applicability of these rules. Rule 3 is as follows
"(3) They shall apply to-
(i) the companies proposing to offer share capital to the public;
(ii) listed companies proposing to increase share capital through rightissue or bonus issue;
(iii) all companies proposing to issue shares for consideration otherwise than in cash; and
(iv) certain persons offering shares for sale to the public."
Furthermore a private limited company cannot invite general public (in large) to subscribe its share under Clause III of Sub Section 28 of Section 2 of Companies Ordiance, 1984. So in my opinion Rule 9 of Companies (Issue of Capital) Rules deals with listed companies moreover the first sentence of Rule 9 states
"person who holds more than ten percent of the shares of a company may offer such shares for sale to the public subject to the following conditions; namely" . It means here listed companies are being discussed.
But if there is still ambiguity then the benefit of ambiguity goes to a person effecting from it.
"(3) They shall apply to-
(i) the companies proposing to offer share capital to the public;
(ii) listed companies proposing to increase share capital through rightissue or bonus issue;
(iii) all companies proposing to issue shares for consideration otherwise than in cash; and
(iv) certain persons offering shares for sale to the public."
Furthermore a private limited company cannot invite general public (in large) to subscribe its share under Clause III of Sub Section 28 of Section 2 of Companies Ordiance, 1984. So in my opinion Rule 9 of Companies (Issue of Capital) Rules deals with listed companies moreover the first sentence of Rule 9 states
"person who holds more than ten percent of the shares of a company may offer such shares for sale to the public subject to the following conditions; namely" . It means here listed companies are being discussed.
But if there is still ambiguity then the benefit of ambiguity goes to a person effecting from it.
