Public issue of equity shares

Question

If partly paid shares are not fully paid up can a company make public issue of equity shares?

Answer 1

Yes, a company can create public issue of equity shares if partly paid shares are not completely paid as equity shares are that division of share capital of company that is not been comprised in the preference shares. The condition that has to be considered for this is that at any time after two years of expiry from the date of starting of company or after one year of shares allotment, public company shares the issues in the authorized region, and directors should decide to offer shares to existing holder of equity shares in proportion to capital that has been paid up on the holder's shares at the time of extra issue.