Ca 2006 sec582 1 provides that shares allotted by a company and any premium on them may be. In a takeover shares in another company. Common examples include issuing shares in return for property assets the company needs or e g.
A company can issue shares for consideration other than cash. Issuing shares for consideration other than cash. It can be issue of shares to a vendor against the purchase of assets or it can be issue of shares against the purchase of the entire.
As is clear from the term itself shares issued for consideration other than cash means when shares of the company are issued to somebody for something which is not cash. A company can issue its shares either for cash or for consideration other than cash. Vendors promoters underwriters etc may be allotted shares instead of.
Shares may be allotted for consideration other than cash. Audit of shares issued for consideration other than cash. The auditor should vouch the payment of commission and brokerage to the underwriter.
If issues were underwritten underwriting agreement should be examined. In this article we will understand the concept of issue of shares for consideration other than cash. There are many purposes for which they re issued.
There are various means and purposes of issuing shares. Issue of shares seems to be a simple process and most of the people know about it in its general form only. In other words cash is not received by the company against such shares.
When shares are issued against the purchase price it is called issue of shares for consideration other than cash.
Issue of shares other than cash. Issue of shares for consideration other than cash. A company generally buys the assets for the business for cash or on credit. Also it usually issues shares for cash. But in some cases it may choose to buy the assets in exchange of shares.
It may offer the fully paid equity shares to the vendor for the value of the assets. A company may issue shares for consideration other than cash. It may for example purchase some fixed assets for which it may make payment in the form of shares. Or it may take over a running business and the consideration for the business may be discharged by the company fully or partly in the form of its own shares.
Entries will be as follows. When any asset is acquired by a company the payment of purchase price may be made by the issue of shares or in cash to the vendor.
When any asset is acquired by a company the payment of purchase price may be made by the issue of shares or in cash to the vendor. Entries will be as follows. Or it may take over a running business and the consideration for the business may be discharged by the company fully or partly in the form of its own shares.
It may for example purchase some fixed assets for which it may make payment in the form of shares. A company may issue shares for consideration other than cash. It may offer the fully paid equity shares to the vendor for the value of the assets.
But in some cases it may choose to buy the assets in exchange of shares. Also it usually issues shares for cash. A company generally buys the assets for the business for cash or on credit.
Issue of shares for consideration other than cash.
