+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Students (https://www.accountancy.com.pk/forum/forum-students)
+--- Thread: Offer for sale (Company Law) (/thread-offer-for-sale-company-law)
Offer for sale (Company Law) - maani - 08-11-2005
Hi,
I want to make the term (offer for sale of shares) clear to me, I have read this from the ordinance but couldn't extract proper meanings.
Who can make this offer?
How is it different from issue of shares?
If anybuddy have the answer to these questions then plz help me.
Ace
- Sarfaraz - 08-11-2005
Aslam u alaikum
A company who want to be listed on a stock exchange has to make a public offer of its share capital.
If the company already has sufficient share capital to operate than the existing share holders having more than 10% of its share capital can make this offer with the approval of commission.
Example of this offer is KAPCO and APL.
In the case of offer for sale the company does not issue fresh capital but the existing share holders disinvest their shareholding to list the securities of the company on the stock exchange.
for this purpose the document issued for offer for sale shall be deemed to be prospectus and the sections of the companies ordinance apply on prospectus shall be applied to this document.
Sections of companies ordinance 1984 relating to offer for sale are 61 and 62.
and the remaining information shall be given by the seniors of this forum
There is a will. There is a way.
0345-4160509
- maani - 08-12-2005
Aslamoalaikum,
It means that holders with 10% or more shares cannot trade on stock exchange without prior approval of the Commission.
One more thing that I am feeling these two statements contradicting each other i.e,
"A person who holds more than 10% of the shares or debentures of a company shall offer for a sale to the public any share or debenture of the company held by him with the approval of SECP."
"The size of capital to be offered to public through offer for sale shall not be less than Rs. 100 Million or 25% of the capital of the company, whichever is lower."
Ace
- Sarfaraz - 08-13-2005
Thanx maani for
"The size of capital to be offered to public through offer for sale shall not be less than Rs. 100 Million or 25% of the capital of the company, whichever is lower."
I didn,t read this in the law?
Can you refer me the section of the ordinance?
Waiting for ur response
Regards.
There is a will. There is a way.
0345-4160509
- maani - 08-15-2005
Yeah,
Issue of Capital Rules 1996, Rule 9.
Ace