Allotment of shares without consideration

Dear Ganesh

As per comanies act Pvt company and pb company must be having paid up capital of Rs 1 lac and rs 5 Lacs respectively from the very first day. if you allots shares withour consideration, how this requirment be met out.

Therefore, consideration is very musch essential whether cash or in kind.

Regards

Sudhir

Dear Sudhir Garg,

The Pvt Ltd Company has already met with requirements of 1 lakh, But about additional allotment of shares to the Promoter/ Promoter Company???. I just wanted to know whether it is possible to allot shares without consideration to the Group Company for controlling interest??

Hi,

Allotment of shares by any company is a contract as per the Indian Contract Act and  for any contract there are certain conditions and one of those conditions is payment of  "Consideration". Accordingly, without consideration the contract can't be completed. In case of allotment of shares the consideration may be "cash" or "other than cash".

Regards

CS Ashwini Kumar (csashwini1970 @ gmail.com)

What are the remedies available for a Group Company/ Promoter to acquire Shares in its subsidiary for controlling interest other than cash. 

Dear Mr. Ganesh,

Can you put your specific query ? (I mean actual facts). I may able to reply the same.

Regards

CS Ashwini Kumar(csashwini1970 @ gmail.com)

Dear Mr. Ganesh,

Thanks for the sensitivity you have shown. Since, I am replying to various queries on company law voluntarily, there is no question of any fees etc.

Regards

CS Ashwini Kumar (csashwini1970 @ gmail.com)