A private limited company was incorporated in april 2015 at authorised capital of Rs. 120000. There are four shareholders having 3000 shares each of Rs.10. The company has 3000 shares unslod since one of the shareholder dedcided to leave the company due to some reasons. Now the company needs funds of Rs. 48 lacs for one of its project. For that purpose another private company has agreed to provide funds in lieu of those 3000 unsold shares. In such as case i need to issue shares at premium of Rs. 1590 (1600-10) (48,00,000/3000=1600).Now my questions are as follows:
1) Will this whole process will come under private placement as prescribed u/s 42 Of Companies Act, 2013
2) whether the company can issue shares at a premium of 1590 each (huge difference between face value and offer value)
3) Is there any condition that the Borrower company should be a 4 to 5 years old company or any other time period?
3) The company need funds and the shareholder do not have so much amount of funds. Is there any other option available for funding other than private placement?
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