A Pvt Ltd Company exists with Rs.1 lac Capital(1000 Equity shares of Rs.100 each). There are 2 Directors(both brothers) and both of them are the only shareholders of the company with 500 Equity shares each.
They've come up with an idea for a huge project. The idea is so good that a couple of investors are willing to put money in the Company provided they get a stake in the profits(i.e. they do not want to show it as a loan). The fact is that the 2 original promoters/directors/shareholders will contribute their 'idea' whereas 2 new investors will contribute 'money'. The profits/losses shold be shared 1:1:1:1(or something like 25.5:25.5:24.5:24.5) among the 4 people since the original directors wish to claim 51% profits and stake.
Now, what are the different alternatives under the Companies Act to show the same?
27 June 2013
If the new investors invest Rs.2 crore and the original(idea) promoters keep their investment to only Rs.1 lac, it will lead to the new investors holding >99%. But the original investors want a >51% stake.
CAclubindia
