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Takeover of a company

Dipul mehta (COMPLIANCE OFFICER ) (333 Points)

04 July 2016

A Director of the Company also Holds 50% Shares can able to take 100% shares of the Company. How Shares Value Calculated and impact on IT Act and Companies Act, 2013?

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4 Replies

Sagar Ramoliya (Artical) (61 Points)
Replied 04 July 2016

Please mention Public or Private co
if public then Listed or Unlisted

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Dipul mehta (COMPLIANCE OFFICER ) (333 Points)
Replied 04 July 2016

private and not listed

Dipul mehta (COMPLIANCE OFFICER ) (333 Points)
Replied 04 July 2016

private and unlisted

Sagar Ramoliya (Artical) (61 Points)
Replied 04 July 2016

Yes director can take over remaining 50% stake.

There are many methods to value share of company like Net realisable value, Agreed value between seller and buyer etc.

For Income tax point of view, Capital Gain would be attracted if cost of acquisition is lower than transfer value and based on period of holding nature of capital gains will decide.