Question
Write a Difference: Irregular shares and Illegal shares.
| Point of Difference | Irregular Share Allotment | Illegal Share Allotment |
| Meaning | The company shares irregular shares in violation of the provisions made on regular share sharing. | Under the laws of the Indian Contract, the shareholding made by a legitimate contract or other legal shareholding in the company is not considered as illegal share sharing. |
| Circumstances: | Before submitting the statement of change in advertisement, before the minimum subscription is filled, the shareholding is done irregular share sharing before the scheduled amount is executed and shares are shared. | If the proposal is not submitted by the applicant or the proposal has not been accepted by the company 6 or the company is notified of the acceptance of the proposal or it is considered as an illegal share sharing when there is a lack of substance. |
| Effects: | Irregular shares may be canceled if the issuing share is received and they have to be processed. | The issuer has no action to cancel. Because the illegitimate share sharing is already considered void. |
| Impact on Membership: | If irregular shares are canceled, then the name of the shareholder is removed from the membership of the member. | The question of cancellation does not arise because unlawful membership is not received. |
| Responsibility: | Responsible officials in irregular shares are responsible for compensating losses and losses to the company and shareholders. | Illegal share allotment agreement is not considered. So no action is required to be taken. |
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