shares buyback

Others 590 views 2 replies

raj singh

author

72 Points Joined December 2009

the private ltd company(agriculture) formed by 2 person as a directors and shareholder

1 Company was originally formed with 1 lakh authorised capital but buy agricultural land worth of 25 lakh as company gets unsecured loan from one of relative of director.please confirm is this a legal act ?.Does this loan is also exempt from " deposit" and do we need to raised share capital or not ?

2. Is there any legal way that one of its director who own 90% shares transfer all share to someone he trust(relative)with or without any money involved with board resolution and draw some kind any type contract or any company law with him that whenever he want to take all shares back at same price .he(relative) should return or transfer all shares back to director without any hassle

Replies (2)

Kamalkishore

student

64 Points Joined August 2007

Regarding ur first q, from Companies Act view Sec 295 will be applicable and the same has to complied with. Then Sec 299 and 300 would also follow. Share capital neednt be raised.

Share transfer is permitted. It is irrelevant for the company as to wat price the shares are transferred from one person to another.

Ankur Garg

Company Secretary and Compliance Officer

114788 Points Joined January 2009

No there is no applicability of section 295 loan to director.

Unsecured loan received by the company from relative of director is exempt from the deposit provisions. Refer deposit rules, 1975. So there is no need to worry.

Regarding your second qus i would suggest go for some specific professional help and draft a shareholding agreement as per your requirement.