Easy Office
LCI Learning

MERGER WITH COMMON DIRECTORS

This query is : Resolved 

10 November 2010 Dear Sir,

I want to ask a question about a merger between say,Company A pvt.ltd. and Company B pvt.ltd.

They have common directors.

Now,A will absorb B pvt.ltd. and the business of B will be carried henceforth by A pvt.ltd.

Please tell me whether A will have to issue shares to the common directors at all.

What could be the suggested accounting entries in both the Company's books in this regard ?
Please help me out !!




10 November 2010 Dear Subhankar

After Purchase of business by A Ltd the shareholders of B ltd have to be given Purchase Consideration, which is usually made by way of issue of shares.

Directors in the capacity of shareholders will receive shares.

Accounting entries can be referred from any CA Final Book of Accounts.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries