Capital to the promoters for consideration other than cash

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CA Ramanuj

CA Ramanuj (Querist)
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19 March 2013 Can we issue capital to the promoters for consideration other than cash???

CA Ramanuj

CA Ramanuj (Querist)
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19 March 2013 Under Section 75 of the Companies Act, 1956, issue of shares for consideration other than cash can be made by a company provided that they also file the relevant contract (such as contract for services, or for sale of assets) pursuant to which such allotment was made to the Registrar of Companies within thirty days of allotment.
For instance, in the case of hiring a technical consultant, you need to file the contract you entered into with the consultant with the Registrar of Companies within 30 days.

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