Ruchie Khanna (Company Secretary) (123 Points)
13 December 2010Dear All,
Can a business transfer agreement be executed without any consideration?? If there is a reference given to an earlier MOU entered into by the parties.
Kindly help me with the implications of the above transaction. Would the agreement be valid contract?? and what would be the tax and stamp duty implications??
Also, kindly help me on what would be the outcome if the above transaction is between a public ltd. (unlisted) company and an individual.
Pl. Help!!
Thanks & Regards,
Ruchie
Jaideep
(Service)
(1368 Points)
Replied 13 December 2010
As far as Contract is concerned, consideration has to be there as a very vital factor for constituting valid contract. Only few of the exceptions provided in section 25 of the Indian Contarct Act, in which, prima facie, aforesaid transaction will not fit.
However, if it is a question of refering to some earlier MOU, it depends on the facts of the case.
Stamp duty will be applicable. Also you have to check provisions of Gift Act, as no consideration is involved, which again requre attention to Income Tax.
As far as question of Compnay, even though unlisted, plz refer to MOU entered earlier which will give more clear idea, i mean to say what approval required form members and provisions of MOA & AOA etc.
sachin paradkar
(managing director)
(22 Points)
Replied 06 January 2012
one partnership firm is to be taken over by public limited company. partnership firm 's assests & liabilities to be transferred at book value . partner's capital to be converted into shares, by alloting suitable number of shares to all partners.
Can some one give road map for this transaction /
sachin paradkar
(managing director)
(22 Points)
Replied 06 January 2012
can someone provide model agreement for transfer of business between partnership firm & public ltd company
Amit Kumar
(Coaching % Tutions)
(22 Points)
Replied 13 February 2014
Dear sir
Some one (Owner of Firm) want to transfer or sell his client in website servise to other person(Because he is going abroad) and he is also getting consideration for that what kind of deed or agreement is required to execute.
Kindly suggest me about it and also send me deed or agreement in exemple for it.
Thanks
Amit Kumar
aiimsacademy @ yahoo.com
CAclubindia
