Corpdaily by CS Kartik Arora

Private Placement means the offer and issuance of shares to a select group of persons by a Company.  The Procedure for issuance of shares on a Private Placement Basis is as follows:  1) Hold a Board Meeting: The first and the foremost step for issuing shares on a Private Placement Basis is to hold a Board Meeting for the following purposes: a) Approving the list of persons to whom the shares shall be issued on a Private Placement basis.  b) To approve the offer letter for issuance of shares (Form PAS-4) c) Calling an Extra-Ordinary General Meeting ("EGM") for obtaining the consent of the shareholders for issuance of shares on a Private Placement Basis.   2) Call an Extra-Ordinary General Meeting ("EGM") to approve the resolution for the issuance of shares on a private placement basis as a special resolution and to approve the offer letter to be circulated for this purpose.  3) File the Form MGT-14 within 30 days of approval of the resolution by the shareholders...