We are in a situation wherein we r required to allot shares for consideration other than cash. however we cannot go for private placements due to certain issues. and now we contemplate to go for Rights issue and then ask the existing shareholders not to exercise there option. once the option is not exercised, we then plan to conduct a board meeting and then allot shares to our selected buyer for consideration other than cash(as once the shares are not bought under rights issue, board can allot shares to anyone in the interest of the comapny). I request the learned members of the group to guide whther the transaction would voilate any provisions of the act.
CAclubindia
