Company act
Sonia Prabhu
(Querist) 17 March 2012
This query is : Resolved
Facts;
If 'A' is or was on Board of Directors of a company 'C1' (C1 is a private limited company)and currently is the Director (owner) of second company Ç2'(C2 is a private limited company)then can he buy the immovable property of Company Ç1 and takes the money on his personal account
Question ;
Will this transaction be valid.
Shonee Kapoor
(Expert) 17 March 2012
Is A still a director of C1?
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
Shonee Kapoor
(Expert) 17 March 2012
And he buying anc collecting proceeds of the same himself????
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
V R SHROFF
(Expert) 17 March 2012
no he cannot do it , it is offence.
Sonia Prabhu
(Querist) 17 March 2012
I am sure he is still the director of C1 but in case he is not then can he buy the property?
Sonia Prabhu
(Querist) 17 March 2012
there are two issues the same person A has done two transactions on the same property ;
1) First he bought the property from the company C1 as mentioned above
2) He sold the same property to a private party and took the money on his account. The deed of assignment is between the company C2 and the private party. And as a director of C2 he ha registered the documents in person.
Deepak Nair
(Expert) 17 March 2012
No. He cannot do so.
Nadeem Qureshi
(Expert) 18 March 2012
Dear Querist
I also agree with experts
SAINATH DEVALLA
(Expert) 18 March 2012
Dear Sonia Prabhu,
The malafide intentions of A are clearly visible in your query.He is trying to rotate the property within himself,must be he is also taking banking institutions for a ride.
Guest
(Expert) 18 March 2012
It is an instance of a clear money laundering case with diversion of funds to private (personal) account of the director through another company.
Naturally, it is an illegal transaction.
Sonia Prabhu
(Querist) 18 March 2012
Thanks to all the experts for your guidance..
I would like to add one more query to this;
In case A shows that he was not the director of company C1 at the time of transaction (i.e. buying from C1)
Then even in such a situation will the deal be void as he was on board of directors few years before this transaction and he was associated with the company C1 earlier.
Guest
(Expert) 18 March 2012
Posting the facts piece by piece, I can only say, is likely to keep you off-track to solve your real problem. The previous reply was according to your question with half of the facts, while you have revealed another story now, as connected with the problem, to attract different legal aspect other than indicated in the replies to your original question with half truth.
Sonia Prabhu
(Querist) 19 March 2012
Mr Dhingra it is not the question of posting facts piece by piece. I had further inquired what if the Director A takes such a defense that he was not associated with C1 at the time of the buying the property from C1...
