Procedure for giving back land to the directors of the co
Rajesh Kumar Agrawal
(Querist) 29 July 2017
This query is : Resolved
1) A Land is purchased and registered with the Registrar of Assurances in the name of A,B and C, in 2007.
2) The above Land was transferred in the name of a Company XYZ Pvt Ltd.,in which all A, B and C are the Directors, in FY 2009-2010
3) The Company issued Equity Shares to the Directors A, B and C in FY 2009-2010 on account of sale consideration of the Land. The Land was not registered with the Registrar of Assurances, at that time in favour of the Company XYZ Pvt. Ltd., but Land was reflected in the books of Accounts of the Company as its Assets, in EY 2009-10.
4) In FY 2010-2011, the Company erected a factory building on the above Land.
5) Land and Building, both are now reflected in the Books Of Accounts of XYZ Pvt Ltd., since FY 2010-2011.
6) The Company is not running well , and the Directors have also given loan to the Company, in addition to the Capital Invested.Now the Directors want to close the sick Co.
7) Now, Can the Company give back the land , by sale or transfer the land, so that the loan of the Directors are paid off. The Company cannot get the sale deed registered with the registrar of Assurances as already, the records of registrar of assurances and land revenue records , show A, B and C as the owners of the Land, (as the land was registered in their name with Registrar of Assurances, in EY 2007-08, at the time of purchase, and the land was not registered with the registrar in 2009-10, when the sale was executed through allotment of equity shares of the Company).
An early and quick reply will be highly appreciated
Thanx
Guest
(Expert) 29 July 2017
Basing on a detailed resolution in board meeting it could be done with the consent of all/maximum directors with legally justifiable reasons.Take the consent of your Company secretary and Auditors and proceed with out any hurdles. And let the filing of ROC done promptly if required with an News paper advt regarding this.
