Wheathe Sec 81 apply or not ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 July 2010 XYZ ltd is the public limited unlisted company which is the joint venture of ABC ltd and DEF ltd company.

ABC Ltd demerge its unit whith PQR ltd. So Now XYZ ltd is consider as the joint venture of PQR and DEF ltd.
the Existance of ABC Ltd is there.

Now XYZ want to issue further share capital to PQR and DEF ltd. Is PQR consider as new shareholder or existing shareholder.
Sec 81 or 81 (1A) apply?

Jagruti (CS)

Jagruti (CS) (Expert)
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30 July 2010 Now due to merger, in ROM of XYZ ltd, name of PQR will be stated, which is called transposition of shares(No actual transfer of shares).

In case of allotment of shares to the PQR & DEF, if all the conditions stated in Section 81(1) is statisfied than Section 81 will apply otherwise you need to allot shares as per Section 81(1A).