A situation has arisen involving a public limited company's intention to purchase a policy for its directors. The agreement entails that the director will dedicate a minimum of 10 years to the company's service, during which the company will cover the policy premium. This expense will be reflected in the company's profit and loss statement as a legitimate deduction under the Income Tax Act.
Throughout the initial 10-year span, the company retains ownership of the policy. After this period, ownership transfers to the employee-director. Consequently, all policy benefits accrue to the employee.
In this context, my query pertains to the calculation of the director's remuneration. Specifically, should the payment of the policy premium be included as part of the director's overall compensation package?
Hello All,
A is the private limited company with paid up capital of Rs. 1 lac and B Pvt. Ltd. And c Pvt. Ltd. Are its shareholders. B Pvt. Ltd. Wanted to sell its shares to Mr. x other than existing shareholders.
The paperwork should be:
1. Notice by transferor to company A
2. Letter by company to A to existing shareholder stating of such proposal at same price or higher price
3. Intimation to transferor by the A company that the existing shareholder is not interested. So you can sell the share to non existing member
4. Application to purchase shares by Mr. X to B Pvt. Ltd.
5. BR by B Pvt. Ltd. For agreeing to sell the shares to Pvt. Ltd. And asking A Pvt. Ltd. To get the valuation of shares done as per general accounting standard.
6. Application to transfer shares and valuation of shares by B Pvt. Ltd. To A company
7. br by B Pvt. Ltd. to sell the shares at a premium amount Rs. 15 as valuation done by the auditor of A company
8. Application to sell the share and giving transfer instrument along with share certificate by B Pvt. Ltd. To A company
9. Sh-4 along with Share certificate
10. BR for transfer of shares by A company
Is this the correct way to proceed with transfer of shares?
*AOA Provisions in this regard:
The board may subject to right of appeal conferred by section 58 decline to register
a) the transfer of share, not being a fully paid share, to a person who they do not approve
Can we assume in the said clause of AOA permit the transfer of share to non existing if the board approves.
*Share transfer stamp duty should be 0.015 of the said amount.
*Do we need to pay stamp duty online or adhere to the share transfer stamp duty affixed in sh-4 is sufficient. The state is UP
*Also while mentioning in the sh-4 column the nominal value of each unit of security should be Rs. 10, amount called up per unit of security should Rs. 15, amount paid per unit of security should be Rs. 15.
*Also is the valuation of shares by the auditor mandatory?
*Should we also offer a premium amount of Rs. 15 from existing shareholders or face value of Rs. 10 each is sufficient.
Also in future if c Pvt. Ltd. Want to sell its share can it transfer the share at face value or is a premium amount mandatory?
Please revert to my queries.
Hi,
Greetings
Can any one help me regarding calculation of shares on premium?
Dear All,
Can the amount in Share Premium Account be utilised to buy land and buildings, machineries etc or should it be used only for purposes mentioned in Section 52 of the Act. If it cannot be used for any other purpose other than those mentioned in Section 52, then what is the purpose of issue of shares at a premium.
Kindly share your opinions please.
Dear Members
Can a pvt ltd company issue bonus shares at premium out of free reserve ?
What does section 52(2) of a company act refer and explain it.
Queries:-
1.) Is there any bar for newly incorporated company to issue further shares at premium under Companies Act?
2.) If a newly incorporated company takes over the business of a proprietary concern, can it issue shares at premium to proprietor?
If a company is newly incorporated then can issue shares at premium?
Can Newly incorporated Pvt Ltd company issue share at premium ?
A private limited company incorporated in the year 2016. financials not prepared. Is valuation report required to issue shares on premium?
Click here to view / answer Share it onA private limited company incorporated in the year 2018. Balance sheet not yet prepared. It has already done two private placements at par and one right issue at par earlier , now wishes to allot shares at premium, can the company do so? Further there are three proposed allottees, Company wants to issue to one at premium and to two at par. Please guide.
Click here to view / answer Share it on