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
- Itr 1 processing
- Off Market debit and credit transaction
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR validation error - Balance sheet is not filled
- Article ship defecit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
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
