Shares against loan
This query is : Resolved
20 November 2012
if a director has unsecured loan outstanding in the books of company and company has decided to issue shares against it. whether an agreement is required to be executed for allotment of shares?. whether is it called an allotment other than cash ? or directly form no. 2 for allotment of shares can be filed.
kindly clarify
kindly clarify
Ajay Mishra
(Expert)
20 November 2012
Hi
Yes,
To become a shareholder there must be an agreement in writing under section 41(2) of the Companies Act, 1956 between the director and company.
Read case law (In Kumaran Potty v. Venad Pharmaceuticals & Chemicals Ltd. [1996])
Yes,
To become a shareholder there must be an agreement in writing under section 41(2) of the Companies Act, 1956 between the director and company.
Read case law (In Kumaran Potty v. Venad Pharmaceuticals & Chemicals Ltd. [1996])
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