Subscription to Shares by promoter - directors

Sanjay (Practising C.A.) (29 Points)

17 June 2009  

Dear Friends,

 

A pvt. ltd. co. was incorporated in 2008. However till date the share money has not been brought in by the promoter - directors. The co has received cash from the two directors. However the same cannot be used for showing that cash was brought in as payment for shares issued to avoid Sec 269 SS of Income Tax.

 

What is the solution for this problem? As of 31/03/2009 what  precautions and observations along with qualificatory remarks, if any, needs to be observed from Audit and reporting point of view?

Can the directors issue a cheque dated b4 31/03/2009, which gets cleared in June 2009. This way the amount will be recd. but not realised, and will come in bank reco. Can this be worked out legally?

 

Your expert views are solicited on this issue.

 

Also if someone can provide me with draft articles of association, it would be very helpful.

 

Thanks in advance,

 

CA Sanjay Salgia.