CA Jignesh
(CA)
(176 Points)
Replied 24 March 2011
Please clarify the exact transaction of selling the shares...Whether it is related to sale the investment in shares of other company ? Also sec.292 covers five types of transaction viz...to make calls on shares , to issue debentures, to borrow money , to invest the fund of the co and to make loans.......whether your transaction covers any of them ? Plz. reply
Jyoti
(CS)
(74 Points)
Replied 24 March 2011
no dear... my comp helds shr of diff comp. now comp wants to sell those shres in mrkt so for that i want brd resln
CA Jignesh
(CA)
(176 Points)
Replied 24 March 2011
Ok..........for delegating powers to Board it may be as follows :
RELOSVED THAT subject to the observence of the provisions of the Compnies Act 1956, the Memorandum and Articles of Association of a company , relevant directives of the Central Govt, applicable to the company , policies , rules regulation and budgets as may be approved by the Board of Directors from time to time and subject to the general supervision and ultimate control by the Board. , the Board be and is hereby authorise to exercise all or any of the powers vested in the Board in respect of investment of shares so invested at any time by or on behalf of the co.........
GURMUKH
(CS)
(81 Points)
Replied 24 March 2011
I understand that the Company is maintaining a demat account & the investments are by the way of open market purchase.
In this case, when this demat account was opened some one must be authorsied by Board resolution to operate this account. check from the Board resolution. Same person can sell the shares
Jyoti
(CS)
(74 Points)
Replied 24 March 2011
No Sir.... actully the my Company is selling shares of other compnies to its grp company at a price of Rs. 1/- and company doesnt hv demat accts. its in physical mode.
GURMUKH
(CS)
(81 Points)
Replied 24 March 2011
Jyoti nw u are adding sme information that sounds complicated. were as selling to the shares is concerned that is not something to be discussed because that can be done with a simple Board resolution. But to answer ur query we need ful information such as
1. are the companies whose shares are to be sold public cos, Listed/unlisted?
2. what is the face value/ market value/ book value of shares those u propose to sell at nominal price of Rs /- (To study the tax implications)
3. What is the structure of ur group companies.
4. How & when were these shares acquired.
CAclubindia
