Plz tell me can a company issues its shares to his accountant in place of payment of fees of his.
also mention the provision of company act...........??????????????
priti karawa (artical) (93 Points)
25 August 2012Plz tell me can a company issues its shares to his accountant in place of payment of fees of his.
also mention the provision of company act...........??????????????
CS RAJESH C.CHOUDHARY
(ASSISTANT MANAGER)
(14607 Points)
Replied 27 August 2012
Dear Priti,
Yes. The company can issue shares to any body including accountant also.
Amount paid to accountant for his service is "salary" by whatever name you call it, and salary is to be paid in cash and not in kind. Issuance of share in lieu of cash is alien to the company law and if and only if the accountant accepts, it can be paid through issue of shares.
Regards,
RAJESH CHOUDHARY
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
