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Thanks Akansha, but how will we comply with the procedure of sec 42. One of the condition of section 42 is that consideration must be in cash paid through cheque (bank) and the amount should not be less than 20000/-. In our case there is no cash and the consideration has been received at the time of takeover of the business and the shares are being issued at par as agreed between the parties. Now what will we do about Valuation?

Private placement

Posted By: Anita 9 year(s) ago

This question has been closed if you want to answer,you have to re-open.

Akansha

As per harmonious interpretation of the provisions, sec 42 shall be read in line with sec 62 (1) (c) which specifically provides for consideration other than cash.

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