Private co

Asha (Querist) 25 October 2012 This query is : Resolved
Query... 1. Can a private limited company allot shares in lieu of services? And if alloted can they forfeit shares if the service obligations are not fulfilled? 2. A euity shareholder holding 5-10% shares in a private limited company. Andwe demerge the company. Can this shareholder object for the demerger?

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ajay sethi (Expert) 25 October 2012
academic query

Guest (Expert) 25 October 2012
Student exercises are not solved here.

Asha (Querist) 25 October 2012
SIR PLEASE GIVE THIS ANSWER

Sivadas Chettur (Expert) 26 October 2012
Dear Asha....
Please make a reference to section 79Aof the Companies Act which authorise the issue of sweat equity shares in consideration of the value addition ! Supply of technical know how etc.

siva208@yahoo.com

Sivadas Chettur (Expert) 26 October 2012
Usually the terms and conditions relating to forfeiture of shares are contained in the Articles. It is done usually when calls are in arrears.
Please let me know whether u have issued shares already. I do not know how u have issued shares even before the rendering of the services. Please make the query clear with more facts.

Siva208@yahoo.com