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Rajeev Talwar (CA)     22 August 2008

shares without consideration

Hi Memebers,

Kindly shed somelight.

can a company issue shares to non mebers for free and take no consideration.

what are the liabilities if aany under the cos act 1956

the co is a ltd company

thanks,

rajeev

 



Learning

 4 Replies

SATISH KUMAR (COMPANY SECRETARY)     22 August 2008

A company cannot issue new shares without any consideration. It can transfer the existing shares without any consideratin. In such case it will amount to gift of shares.


regards


SATISH


 


 

RAM DEO KAKRA (ADVOCATE )     22 August 2008

can issue shares to existing shareholder as bonus share

Vinay Chhikara (Legal Expert)     28 August 2008

yes it will amount to gift of shares.

Rajeev Talwar (CA)     28 August 2008

if this gift of shares then what shall be the accounting aspect


a co gifts new shares to X cerdit goes the caapital and Dr goes what


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