Pvt ltd takeover sole proprietorship

Pvt ltd 1458 views 1 replies

A proprietorship business of one of the director, takenover by Pvt Ltd as going concern.

Net asset difference credited to Capital Reserve A/c in Bal sheet of Pvt Ltd.

Now directors want to use Capital Reserve to for issue of share capital.

Can they do it so.

If yes can capital reserve use for issue of bonus shares ?

Replies (1)
According To me as per section 63 of 2013 companies act [Issue of bonus shares]Capital reserve can be utilised subject to realisation in cash. If that view is considered,bonus shares can be issued. Other views welcomed


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