10 November 2008
I understand that. I only mean to say that if the partnership has been converted into a public limited it is not possible to make the numbers go below seven. If it is converted into a pvt ltd., it is possible, but after conversion not at the time of conversion. Also have a look at IT Act provisions.
all the partners of the firm immediately before the succession become the shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of succession,
and
furhter
the aggregate of the shareholding in the company of the partners of the firm is not less than fifty percent of the total voting power in the company and their shareholding continues to be as such for a period of five years form the date of the succession.
Sir i understood that i cant show / adjust their current account in loan.
sir i understood that i have to allot share in same proportion, but my furhter query, is after convesion 3 partners can sold their share to the remaining shareholders.
10 November 2008
I find it difficult to understand what you say.As long as the condition of the IT Act is kept, the partners can do so within the frame work.
CAclubindia
