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27 March 2009 why is interest paid to shareholders u/s 208 during long gestation period?
Plz explain with an example.

27 March 2009 Dear Karuna,

First you be clear in your mind it is the power of comany to pay interest to their share holders who pay own amount for formation of comany.

Some times it is very necessay to feel law to apply any section because no one want to give any amount without any interest and it is just promoting section for the formaion of company and in the begning company can not pay otherwise i.e. in the form of divident to the shareholders.

27 March 2009 Dear Karuna,

First you be clear in your mind it is the power of comany to pay interest to their share holders who pay own amount for formation of comany.

Some times it is very necessay to feel law to apply any section because no one want to give any amount without any interest and it is just promoting section for the formaion of company and in the begning company can not pay otherwise i.e. in the form of divident to the shareholders.


29 March 2009 Thanks a lot.............



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