If my company is alloting shares at premium @ Rs. 50 (Face value Rs. 10) and share price is also as per company's net woth and i want to transfer the shares next year @ Rs. 10 i.e.at face value. whether it is as per law or not ?
shweta bajla (ipcc) (97 Points)
24 February 2014If my company is alloting shares at premium @ Rs. 50 (Face value Rs. 10) and share price is also as per company's net woth and i want to transfer the shares next year @ Rs. 10 i.e.at face value. whether it is as per law or not ?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 26 February 2014
Transfer of shares is a contract between seller and buyer. Company has to record the same in its books if it is otherwise in order. Company is not concerned whether sale consideration is adequate or not.
CAclubindia
