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Issuance of warrants for purchase of shares
10-02-2009, 09:04 PM
Post: #7
 
Dear,

I at the outset has said that there is no law but cushion is available in the law. Section 90 does not restrict the classes of share capital as ordinary or preference. Therefore, warrant may be considered as a class of share capital.

As for as section 86 is concerned, the company can not issue share other than right. if we are to issue warrant to one shareholder, this section shall be followed as a substance of the matter not merely its legal form (the definition of share or capital). The company is going to issue warrant to purchase share capital to a single investor in future, how it can be issued without following section 86. Is special resolution will be required after 5 years when actually share will be issued?

In this case, i have supposed that the company is trading on the higher market value than its book value / face value. if warrant is issued at a price more than the face value but lower than market value, i think it will cost nothing for the company.


Regards,

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[] - kamranACA - 10-01-2009, 10:51 PM
[] - Star - 10-02-2009, 01:46 PM
[] - kamranACA - 10-02-2009, 06:32 PM
[] - Star - 10-02-2009, 07:12 PM
[] - kamranACA - 10-02-2009, 08:19 PM
[] - Star - 10-02-2009 09:04 PM
[] - kamranACA - 10-02-2009, 11:36 PM
[] - Star - 10-03-2009, 01:09 AM
[] - pakvestor - 09-14-2010, 05:49 PM

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