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Preliminary expense and share capital


mehul (Student CA IPC / IPCC)     02 December 2019

mehul
Student CA IPC / IPCC 
 12 likes  151 points

| My Other Post

Can preliminary expenses be treated as share capital ?
Company doesn't want to bring in capital and want to issue shares for the preliminary expenses they have incurred already .
2 situations:
1)If directors and shareholders are same
2)If directors and shareholders aren't same

And expense are incurred by the director of the company

pls mention case law if any !




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