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pvt co.

(Guest)

a pvt co formed with authorised capital of 1 lakh now how much amount its director will contribute to company and how????

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12 Replies

P-A-W-A-N (TAX - MANAGER AT GURGAON) (541 Points)
Replied 28 November 2009

Please Explain Question Properly

(Guest)

how much director introduce capital in the company and tell me the accounting to open company account in tally related to share capital, share application ?/

Gargi Ranade (CS) (619 Points)
Replied 01 December 2009

Hi kundan !

If I am not wrong ,It is not director who contribute share capital but it is subscriber to the memorandum who contribute share capital of the Comapny . Share capital will definetly depend upon number of shares held by each subscriber.

If your directors are only subscriber they can hold shares in any number .there is no hard and fast rules in this regard.

kindly check your articles whether it require director to hold any Qualificaion shares. if require you can allot same in stated proportion .

Regards,

Gargi

(Guest)

whether one private company invest in another private company or not ? if yes how

Gargi Ranade (CS) (619 Points)
Replied 01 December 2009

Hi Kundan !

Yes , Even private Ltd. Co. can invest in another private Limited Co. as per prescribed limits of Section 372A .

If you read def. of holding Co. it nowhere restrict private Co. from becoming holding co. of other Private ltd. company.

Any Company can invest in other company by subscribing to shares of such other Company or by purchasing shares of other co.

Regards,

Gargi

(Guest)

dear gargi rande

as per company act private company prohibits any invitation to the public to subscribe for any shares in, or debenture of the company so it is possible for one pvt company can subscribe share in any other company

Gargi Ranade (CS) (619 Points)
Replied 01 December 2009

Dear Kundan !

Kindly read section carefully Private Limited Co. can not make any public issue that does not mean it can not invest in any others comapny's share .

If you are thinking from other Pvt. Co's point of view it does not amount to public issue it can do so by private placement method.

Co. act nowhere restrict Private Co. from raising share capital .it just prohibit pvt . Co. from public issue.

In practice , many pvt . co. have JV with other Pvt. co. where such other pvt. Co. subscribe to share of other Co.

Please correct me if I am wrong .

Kindly do not spell names wrongly .

Regards,

Gargi

(Guest)

sir if u want to say that a individual cannot invest in private company but other private co caninvest and wht is private placement method

i am confused in this matter

Gargi Ranade (CS) (619 Points)
Replied 01 December 2009

Hi Kundan !

Private placement is an issue of shares or of convertible securities by Co. to a selected group of person under section 81 of the Co. Act which is nither a right issue nor public issue ,this is faster way of raising capital.

Please appriciate, Even any individual can invest in private co. ,ristriction on private ltd .is only for public issue , it can not issue prospectus and can not sale there share through stock exchanges,can not list share can not offer same to public at a large.

However it can sale its shares without public issue to such number of persons which will togatherly not exceed maximum number of members as prescribed i.e. 50.

please correct me if I am wrong ,and share your further doubts

regards ,

MS. GARGI

(Guest)

thanks for sharing your valuable knowledge with me

CS Jithesh (ACS,) (COMPANY SECRETARY ) (485 Points)
Replied 02 December 2009

But one thing is there as this is a trasactio between two pvt companies Sec 372A will not apply as it is exempted for pvt companies. but if the limit is going above as mentioned u/s 372 A then it is a good corporate governance to have a special resolution to be passed .

The main advantage of pvt companies are not applicability of Sec 372A

Regards

CS Jithesh

gokul (Accountant) (126 Points)
Replied 02 December 2009

Sec 292A(11) - Audit Committee- If a default is made in complying with the provisions of this section, the company, and every officer who is in default, shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to fifty thousand rupees, or with both.

Sec 372A - Inter corporate loans- If default is made in complying with the provisions of this section, other than sub-section (5), the company and every officer of the company who is in
default shall be punishable with imprisonment which may extend to two years or with fine which may extend to fifty thousand rupees ......

The above two section provides for imprisonment of company if the respective sections have not been complied with.

Respected members may explain the meaning of imprisonment of company as laid down in the section. Is there any other section which has similar penal provision.

Thanks