09 January 2011
A private company all share holders (Husband and wife) subscribed Rs. 3 Crores at the time of registration of the company which was registration on Dec 2007. In the object clause it was written that the company will take over the business of Husband. But till to date all the business is not taken over. Now my question is whether the two shareholders have to bring Rs. 3 Crores in cash, which is really impracticable. Is there any other procedure to solve this problem?
09 January 2011
The bojective clause say " to takeover the husband business and to run the same business ". No time frame has been given in the clause. I donot feel any need to bring the cash for share capital.
10 January 2011
As per MOA once the company is incorporated with the object of taking over proprietory concern all the assets and liabilities of the proprietorship stands transferred to the newly formed company. If the net assets brought in from the proprietorship concern is >3crores then shares can be issued for consideration received otherwise than in cash i.e.transfer of business worth Rs.3 crores. However the business of proprietorship pertains to husband and hence shares can be alloted to him to the extent of amount subscribed by him as per MOA. As far as wife is concerned she needs to bring in capital or some other assets towards her contribution for the amount undertaken to be subscibed by her in MOA. Other experts please give your opinion too.
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