14 May 2013
As per sec 79 - Private limited company cannot carry losses in previous year if 51 % of shareholder at a time of loss is not shareholder in previous year suppose A have 50% holding of share and B have 50% holding of share in 2011-12.in 2012-13 C become share holder with 45 % share and A with 10 % and B with 45% at that time company share authorized is 100 share But in 2013-14 company increase his share authorized by 300 share more and same is taken by C as per board resolution now C become shareholder of 345 and A 10 and B become 45 now old shareholder is less than 51 % of shareholder now company can carry forward in 2012 -13,13-14 & 14-15 and give me impact in each year - my doubt is come because of change in authorized share???? give me answer with sec and if possible then with any case study
14 May 2013
SECTION 79 RESTRICTS THE SET OFF OF THE CARRY FORWARD LOSSES. IT SAYS THE YEAR IN WHICH THE LOSS WAS INCURRED, IN THAT YEAR (ON THE LAST DATE) THOSE WHO HAD THE SHAREHOLDING OF 51% OR MORE (EITHER INDIVIDUALLY OR COLLECTIVELY) SHOULD BE THE SHAREHOLDERS IN THE YEAR IN WHICH YOU ARE SETTING OFF THE LOSSES.
IN YOUR CASE A AND B HAD 51% SHAREHOLDING IN 11-12 (THE YEAR IN WHICH LOSS INCURRED). SUPPOSE U WANT TO SET OFF THE LOSS IN YEAR 2013-14, IN THIS YEAR A & B INDIVIDUALLY OR COLLECTIVELY NOT HOLD MORE THAN 55 SHARES OUT OF 400 SHARES. (13.75%). HENCE THE LOSS WILL NOT BE ALLOWED TO SET OFF IN THE 13-14
CAclubindia
