My company have negative share value.
One of share holder wants to sale his share at face value price of the company.
Under which section of corporate law,he can sales at face value price.
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Sale of share
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Under Section 44 and Section 56 of the Companies Act, 2013, a shareholder can legally transfer unlisted shares at Face Value even if the company has a negative book value, provided the company's Articles of Association (AoA) do not restrict it. From an income tax perspective (Section 50CA), since the actual sale price (Face Value) is higher than the negative Fair Market Value (FMV), the actual Face Value will be treated as the full consideration for calculating Capital Gains for the seller. No tax penalty arises for the buyer.
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