Section 79

Laltu (MT) (25 Points)

19 April 2011  


XYZ’ is a private co. whose face value of equity share is Rs.10/- each. 
Shareholders at their meeting decided to issue some shares to promoter of 
the company at Rs.1/- per share. The company is loss making company. 

The Company satisfies all conditions stated under the Sec.79 except taking 
Central Government approval/Company law Board. 

   1. Is it Central Government approval or Company law Board approval? 
   2. What is the procedure to obtain approval? 
   3. Is there any form through which I can apply for approval?