Share issue before receiving consideration

Akaash (Student) (34 Points)

22 April 2010  

Ours is a limited company. Our auditor by error has issued more shares than the consideration amount received to one of the directors. It is a closely held company, hence payment is not as issue.

My query is can a company issue shares before receiving consideration in any of the following cases

1. A back dated cheque which has not been encashed by the company

2. An undertaking from the director for payment of the consideration amount before a fixed date

If there is some other method to clear such a transaction, kindly inform me on the same.