Absorption of a partnershipfirm within an existing Company
This query is : Resolved
25 January 2009
Sir,
I want to know that there is an existing Partnership Firm & another existing Company. Now the partners of the firm wants the firm to be merged with the Company so that the firm gets dissolved & there portion of Capital is invested in the Company. Can you please guide me with the procedure of the same?
Thanking you,
With Regards,
Subhendu Chakraborty.
I want to know that there is an existing Partnership Firm & another existing Company. Now the partners of the firm wants the firm to be merged with the Company so that the firm gets dissolved & there portion of Capital is invested in the Company. Can you please guide me with the procedure of the same?
Thanking you,
With Regards,
Subhendu Chakraborty.
26 January 2009
First value the partnership firm.
Secondly if the company is a public limited company where public issue has been made by the company then for purchasing this company you should get clb permission and court permission.
If it is private limited company then all the existing shareholders should agree for the purchase.
Value the book value of the share of the company and the realistic value based on pe ratio etc.,
Then no. of shares to be issued has to be decided by the company.
Issue new shares to the firm.
Close the books of the firm and goodwill if any received in cash or through shares will be treated as capital gain.
Secondly if the company is a public limited company where public issue has been made by the company then for purchasing this company you should get clb permission and court permission.
If it is private limited company then all the existing shareholders should agree for the purchase.
Value the book value of the share of the company and the realistic value based on pe ratio etc.,
Then no. of shares to be issued has to be decided by the company.
Issue new shares to the firm.
Close the books of the firm and goodwill if any received in cash or through shares will be treated as capital gain.
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