Further issue of share capital - subscription by way of set-off with existing dues

Arjun G. (DEF) (57 Points)

31 January 2023  

Dear Experts, 

I am struggling with the following points: a further issue of share capital is being considered in a private limited company, under the Companies Act, 2013, is it possible for a shareholder to subscribe to such issue by way of set-off with existing sum due by the company to such shareholder? 

I fail to find any legal basis for this in the act. 

Thank you very much in advance!