Can loss making company be sold to new promoters

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K S Sainath (Querist)
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09 November 2012 Hi,

Please let me know whether a loss making company be sold to new promoters without any carry forward of transactions of that Company( i.e is zero balance).

So that new promoters can bring in their capital and start the activities as a new company.

regards,

sainath

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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09 November 2012 Hi, conceptually speaking, an incorporated company(wheather pvt or public) has perpetual succession, literally can not be sold, only its shareholder can change their holdings as per prescribed provisions. Prima facie there are no such constrant to transfer shares, but in a pvt. limited company share can be transferred as per articles only.

Thanks,