Issue of New Share to New Directors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2011 Dear Sir,

We are a privately held Pvt. Ltd company
holidng approx. 50+50% shares by two existing
directors.
We intend to appoint to 3 new Directors
for which their DIN nos have been allocated.
We intend to issue free shares around 41% to this new directors (21+10+10)as per our internal agreement without any charges.
Kindly advise.

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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23 February 2011 Please follow the following procedure:

Hold board meeting and decide thet further share would be issed

Alter MEMO and Article if authorised capital is less. HOld EOGM and file form no 23 to ROc

Receive share amount from new allottee.

Hold again bOard meeting and allot shares to them

file form no 2 to ROC

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Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2011 Dear Sir

Kindly inform at what minimum price
can additional shares be issued.
Can it be issued Free ?
Can it be gifted free to my brother ?
Will any income tax or wealth tax
be charged on this free issued gifted shares?

Thanking you

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Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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24 February 2011 Price of the additional shares is determined on the basis of the following:-

Book Valuse of shares
Present Working of the Company
Future prospect of the COmpamy

Shares cannot be issue free to any one. Company cannot gift its shares.

You can issue Bonus shares to the existing shareholders of the company by Complying provisions of the Companies ACt