Hi
I have a private limited company in which i and my borther is director having equal number of shares. I need to quit the company, so i need to transfer my shares to company/other director in lieu of 50% assets which the comapny is holding, as the company/other director is not having cash to settle my shares.
Please guide me such that i can get 50% of company assets.
Dear CA Shubam
Being shareholder, you do not have the right over the assets of the company except in winding up. Transfer of shares between two does not make company liable to sell its assets to transferor. i dont see any instance by which you can get the 50% assets of the company until and unless company becomes the party of any sort of agreement between you and transferee. You may however enter into tripartite agreement among transferor, transferee and company whereby company will transfer its assets in lieu of your transfer of shares to the transferee. Company Books of Accounts will then show Transferee as debtors for the value of assets transferred in your name.
Views of other members solicited.
Regards- Sudhir
Thanks Sudhir for you help.
Can you let me know is there any tax implication (on part of company) & Registry Cost (on me) on transfer of assets?
Further, Just wants to confirm, there would be tax implication on me for sellling shares and receiving assets??
Regards
Shubham
CAclubindia
