Hi, I want to under the if a Startup whose Paid Up Capital is 1 Lacs opts for early stage funding where it agrees with an investor that it would give 20% Shares to the Investor for 20% will issue shares?
I mean if the Co. issues shares at Face Value, the founder would stand nowhere.
If the shares are issued at Premium, the premium has to be kept in a select bank account and it could not be used for working capital for which business is taking funding.
So how would we issues shares to ensure Investor stays at 20% but still the money brought in can be used for business purposes.
thanks in advance
CAclubindia
