14 May 2010
If a private limited company issues shares at a premium of Rs. 2000 but the book value and break up value of the shares is Rs. 200 only then what are the consequences in the hands of the issuing company and the acquirer person.
Further what will be the consequences in the hands of the acquirer person when they are sold again.
14 May 2010
Justification would be very difficult and the consequence could be that the IT department may consider a notional value for the shares and the balance as deemed dividend. They may also put a scrutiny on the company and charge the comapny and the acquirer for siphoning of funds.
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