Fixed assets in name of director

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2011 hi
I want to know about there was any circular/provision/press note in company act,about building construction in name of company but land purchase by name of Director. and both are showing in the book of company in the head of fixed assets.
but now problem is that company want Lease out this property. but lessess told that agreement made in the name of both director & company sepratly, please cleared me about this situation

CS Bijoy

CS Bijoy (Expert)
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31 August 2011 Purchase of Land is the pre-incorporation activity done by the promoter who will be the proposed director of the company, at that time company is not in existence so land is purchased in the name of the promoter but after incorporation all contract and transaction can be converted in the name of the company.

So you can first transfer the land fron Directors name in the Companies Name and than lease that.