04 October 2008
Dear Sir, A newly formed company acquired the business of a partnership firm on 01.05.2008 partners are to be alloted equity shares in new company. is there any time limit within which shares are to be issued to partners or these can be issued anytime. partners capital balances can be kept as share application money for any time?? please advice
04 October 2008
Sec 47 (xiii) / (xiv) - One of the condition is that all the partners of the firm immediately before the succession become the shareholders of the company in ratio of their capital balance in the firm's books. Otherwise your transaction will be consider as a transfer and attract CG.
06 April 2009
allotment should be in reasonable time. also take steps to increase authorized capital it should be more than purchase consideration. if a balance sheet date comes between take over and allotment of shares. the purchase consideration can be shown under current liabilities as shares pending allotment on purchase of business. brief note to be given under notes to accounts and accounting policy.
CAclubindia
