Management of private company wants to issue offer document for issue of shares to new selected shareholders under private placement basis.
As per Companies Act, the Board empowers to allot shares on receipt of share application money. But, whether Board empower to issue offer document without getting approval from existing shareholders. If Board issued offer document to new selected shareholders, will that be valid under Companies Act.?
1) Do the company need to obtain share valuation certificate from chartered accountant , because it is going to be issued to new shareholders. Please clarify.
2) If Board issued shares to new shareholders without consent from existing shareholders, will there be any objection from existing shareholders?