Payment for property before incorporation of company

Co Act 2013 198 views 2 replies

A Pvt.Ltd.company incorporated on 25th September 2017 but before incorporation promoter directors has paid substantial amount to the developer for booking a office space from their personal savings A/C...and the property was completed on December,2017 and after that the property was regsitered in the name of newly formed company in January,2018. The registration fees was debited from company A/C. My question is can the company issue shares against the total value of property to the directors. Is there any way out to draft a resolution and file MGT-14 with MCA,giving full details of regsitration and earlier sale agrrement and issue shares against those payment...or else how to treat this contribution of director in company's books of accounts.

Please help me.

Replies (2)

Dear Arindam,

It is called Pre incorporation contract.A pre incorporation contract is required to be ratify by the Company.If at the time of Ratification it is also ratify thta the consideration be paid by issue of shares then this is possible.

Thanks a lot 


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