Sec 56

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Querist : Anonymous

Querist : Anonymous (Querist)

12 February 2011 Whether the new share issue of a unlisted company will attract the provsions of Sec 56 of the Act.

Whether the right share issue of a unlisted company will attract the provsions of Sec 56 of the Act.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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12 February 2011 Section 56 (2)(viia) is applicable to Firms or a closely held companies (Companies in which public are not substantially interested).
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Except a pvt ltd Co.,an unlisted company may be a public limited company or vice versa.
So it is not always true that every unlisted
company's shares are covered under Section 56 (2)(viia).

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