banner_ad

Payment in kind

222 views 2 replies
like in partnership firm, a partner sometimes contributes towards his capital in kind,
can a shareholder do the same in a company?
Replies (2)

Yes. It is one of the SWM philosophies that shareholders do their best to protect their investment by protecting the business and that is why issuing shares is less riskier than debt as sole ownership is diluted after going public.

Ya, But it's not straight forward like partnership while, the transaction to be approved by board and by shareholder ,also need to check that txn is falling under RPT? I can give you example, Suppose Mr. X is A shareholder and Director in a company ,Company want to buy his Mercedes As second hand for official purpose at say INR 40 Lacs, Now Director is Shareholder and also a RPT, So approval of board is required and Related Party Director will not participate in meeting ( Subject to exception that company is private and 90% holder are Friends /Family or OPC) then shares May be issued at CA certificate on FMV of shares and subsequently EOGM/AGM allotment can be final with all relevant details and filing Appropriate form and giving share certificates to director.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details