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Asha (Querist) 25 August 2012 This query is : Resolved

Plz tell me can a company issues its shares to his accountant in place of payment of fees of his.

also mention the provision of company act...........??????????????

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Khaleel Ahmed (Expert) 25 August 2012
Yes. The company can issue shares to any body including accountant also.

R.K Nanda (Expert) 25 August 2012
Co. can do it.

Sudhir Kumar, Advocate (Expert) 25 August 2012
If he agrees to receive the shares in lieu of salary.

Anirudh (Expert) 25 August 2012
Yes, a man's salary, WITH HIS CONSENT, can be paid in meal or malt as well as in money. In other words, his salary can be paid by means of shares of the company, if he is willing to accept the same.

venkatesh Rao (Expert) 25 August 2012
Amount paid to accountant for his service is "salary" by whatever name you call it, and salary is to be paid in cash and not in kind. Issuance of share in lieu of cash is alien to the company law and if and only if the accountant accepts, it can be paid through issue of shares.

Devajyoti Barman (Expert) 26 August 2012
Yes it is permissible form of transfer of share.

V.Mahadevan (Expert) 26 August 2012
Allotment of Shares otherwise than for cash is not alien to to company law. As a matter of fact shares are allotted otherwise than for cash if a person brings in valuable assets, tangible or intangible.Such transactions are based on mutual consent.
mahadevan.

venkatesh Rao (Expert) 26 August 2012
But services of an accountant requires payment in cash only and if company proposes and accountant agrees, then it can issue shares in lieu of cash.

V.Mahadevan (Expert) 27 August 2012
The original questioner speaks of 'payment of fees'whereas Shri Venkatesh Rao interjects with expressions such as 'Cash' and 'salary'. Clarity of expressions helps.

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