Allotment of Shares/ Securities for Startups [Whiteboard Friday]

The new company law has brought important changes to share allotment process. Now most of the allotments need to follow a specific process, information about allotment should be filed with RoC in certain timeframes.

In this episode of eLagaan Whiteboard Friday, the eLagaan team talks about various options available if a company is planning to raise investments from investors or allot stocks to employees. Non compliance to specified process can turn out really expensive either in terms of too much diluation or heavy penalties.

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