Agreement Made Orally
This query is : Resolved
10 July 2007
Sir,
What Are The Likely Risk Implications when a Limited Company Transfers Assets of over Rs.1 Crore only on the basis oral
agreement between the two parties.
What Are The Likely Risk Implications when a Limited Company Transfers Assets of over Rs.1 Crore only on the basis oral
agreement between the two parties.
Shashi Mohan Jha
(Expert)
11 July 2007
Oral agreements can not be challenged in a court of law.
Board would generally not permit director to "execute transactions specially material and capital nature on a oral basis.
Auditor may also qualify the report in absence of any written agreement/contract
Board would generally not permit director to "execute transactions specially material and capital nature on a oral basis.
Auditor may also qualify the report in absence of any written agreement/contract
12 July 2007
What do you mena by transfer ? Is it sale ? If yes, then consider the following :
Are the party involved are related parties ?
Whether Rs 1 Crore is a material amount keeping in view the Asset base of the company ?
Such transaction should not be execute without proper documentation keeping in view the requirement of CARo and Corporate Governance.
Are the party involved are related parties ?
Whether Rs 1 Crore is a material amount keeping in view the Asset base of the company ?
Such transaction should not be execute without proper documentation keeping in view the requirement of CARo and Corporate Governance.
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