Dear members,
Can a public limited company allot its shares to another public/private company against the invoice received by it?
A public company is purchasing some kinds of raw material from some other companies and making payment with one or two months.
Now the first mentioned company wants to allot some share against such invoices. Both the companies are agreed with this arrangement.
My question is whether this will be considered as allotment of shares otherwise than in cash and form-3 needs to be filed as no contract is entered between these company or this will be considered as allotment of shares for cash as these are the liquid assets of the other company.
Pls advice.
manoj
CAclubindia
