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sanjay srivastava
(Querist)
19 February 2011
Dear Friends PlZ answer of the following query:
Mr. X is the MD of A Ltd and director of B Pvt. Ltd.
B Pvt. Ltd. has given a loan of Rs. 5 Crore to A Ltd and now Mr. X want to pay Rs. 5 Crore to B Pvt. Ltd. directly on Behalf of the A Ltd ( for repayment of Loan) and desireous of getting shares of Rs. 5 Crore from A Ltd. is the transction valid ?
Mr. X is the MD of A Ltd and director of B Pvt. Ltd.
B Pvt. Ltd. has given a loan of Rs. 5 Crore to A Ltd and now Mr. X want to pay Rs. 5 Crore to B Pvt. Ltd. directly on Behalf of the A Ltd ( for repayment of Loan) and desireous of getting shares of Rs. 5 Crore from A Ltd. is the transction valid ?
Jayashree S Iyer
(Expert)
21 February 2011
According to me, proper course would be X pay Rs. 5 Crores to A Ltd. towards share subscription and A Ltd to repay its debt to B Ltd.
However by way of executing a tripartite Agreement, this type of transaction can be entered into.
Other experts in the forum, please give your comments.
However by way of executing a tripartite Agreement, this type of transaction can be entered into.
Other experts in the forum, please give your comments.
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