Private limited company?
This query is : Resolved
07 February 2013
can a private limited company issue shares to its shareholders differently-in cash to one shareholder and for other than cash consideration to other shareholder? can other than cash consideration be the shares of another company that are being held by the shareholder to whom shares are being issued?
plz reply
plz reply
Ajay Mishra
(Expert)
07 February 2013
Hi
In first case you can do so by Board Meeting and allot the shares.
In second case, it will be treated as transfer of shares of another company. For this you will pass a resolution for selling of your Investments.
In first case you can do so by Board Meeting and allot the shares.
In second case, it will be treated as transfer of shares of another company. For this you will pass a resolution for selling of your Investments.
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07 February 2013
sir if a pvt ltd company is issuing shares to mr a , can the consideration be shares held by him in another pvt ltd co? please mention the section also.
Ajay Mishra
(Expert)
07 February 2013
Hi
It will be called Share Purchase and you can treat as Investment under section 292 of the Companies Act, 1956.
Please check what your company articles permit to receive consideration in kind of shares against allotment.
It will be called Share Purchase and you can treat as Investment under section 292 of the Companies Act, 1956.
Please check what your company articles permit to receive consideration in kind of shares against allotment.
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Ajay Mishra
(Expert)
07 February 2013
I have no much knowledge on tax implications.
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