A firm is converted into Private limited fulfilling all conditions laid down under sec. 47(xiii). As on the date of conversion the capital account of partners were 10 lacs each and they have issued same number of shares. After 2 months of the date of conversion two partners of them are issued with additional shares as they have brought money for the business. Whether it is the case of violation of condition no. 4 of sec 47 (xiii) as the proportion of shareholding changes, as it is stood on the date of conversion.
Also whether depreciation to be calculated on time basis or full depreciation is available.
Please.
CAclubindia
