Private placement vis-a-vis preferential allotment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 April 2015
Dear Experts
We are issuing shares to a person who is providing advisory services to the company. Since company has no funds, they are issuing shares instead of remuneration. The same shall be covered under preferential allotment u/s 61(1)(c) of Co. Act 2013 for issue of shares for consideration other than cash.
Ref to that sec says we have to follow section 42 provisions which relates to pvt.placement
One of the conditions of pvt placement being the amount should come in cheque and that it should be deposited in a separate bank account. But there is no money coming. Only in lieu of services, co. is giving shares.
How to comply with the prov of section 42?
We are issuing shares to a person who is providing advisory services to the company. Since company has no funds, they are issuing shares instead of remuneration. The same shall be covered under preferential allotment u/s 61(1)(c) of Co. Act 2013 for issue of shares for consideration other than cash.
Ref to that sec says we have to follow section 42 provisions which relates to pvt.placement
One of the conditions of pvt placement being the amount should come in cheque and that it should be deposited in a separate bank account. But there is no money coming. Only in lieu of services, co. is giving shares.
How to comply with the prov of section 42?
09 April 2015
It's a case covered under issue of shares other than cash hence money will not comeand you need to attach agreement stating the fact with ps3. In case you need further information about this you may contact me at 9015980399 or kanj3101@gmail.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- Difference between Date of Payment and Date of Deduction?
- GST Rate for Catering Services
- FCRA 6 E- Intimation
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
