Issue of Shares in Kind

This query is : Resolved

Mahendra Surana (Querist)
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19 January 2024 There is Agreement between the company and sellers (Directors) of land on 1.7.2023, for the purchase of leasehold property in the name of the Company.
Now Company wants to issue shares to the directors for the purchase of leasehold property in the month of Jan 2024.
When EGM (in July or before allotment of shares) to be called for allotment of shares.
Similarly, for loans taken from directors, shares to be issued, when EGM to be called?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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19 January 2024 A company cannot advance loans to directors, their relatives or partners, nor any guarantee or security with connection to any loan can be provided to them.

https://taxguru.in/company-law/loan-directors-companies-act-2013.html