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shares alloted otherwise in cash

AMIT AGARWAL (learner) (114 Points)

15 September 2010

hi friends...

my client has a pvt ltd co...authorised capital is rs.5lacs & paid up capital is rs.1 lacs....The co. want to purchase some properties of the directors & the consideration for that to be paid in shares....The face value of share is rs.10.....

my query is that can the co. allot the shares of face value of rs.10 at premium of rs.340/- for the consideration of the property acquired & if so, how it will be mention in form-2 for allotment of shares & what are the attachments reqd for the same....

thanks ....

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4 Replies

NIRALI SOLANKI (JOINT MANAGER LEGAL & SECRETARIAL) (87 Points)
Replied 15 September 2010

Dear Friend,

The Shares of Rs. 10/- Face Value can be alloted at premium of Rs. 340/-. The thing is you must be able to justify in case query is raised by incometax.

File Form No. 2 for allotment of shares in the column 2. Allotment otherwise than in case. According to Schedule VI disclosure of the fact that shares are alloted for consideration otherwise than cash.

Following must be attached.

1. Copy of Agreement for allotment for allotment of Shares between the Company & the Owner of Property.

2.Board Resolution for allotment of Shares.

3. List of Allottees.

Nitin Grover (CS) (1228 Points)
Replied 16 September 2010

Dear Friend

In this case you have to file Form - 3 with Form - 2.

Regards

AMIT AGARWAL (learner) (114 Points)
Replied 16 September 2010

is it mandatory to file form3 in this case or form2 attach with copy of agreement is sufficient because form3 is reqd when there in no agreement in writing .....