Hi
I have a case which specially very rare heard in India. In some of the countries corporate law allows specifically or effectively for some form of Capital contribution which is both a legal and accounting defined term. This refers to when a shareholder donates cash or assets or give up rights against an advance or a loan for no addittional capital (it is effectively) a gift to the company for which no gift tax is charged.
The said amount goes to reserves of shareholders fund usually called "Other Reserves" or "Capital Contribution Reserves" whatever the local accounting rules called.
This normally requires the shareholders to resolve to do the contribution, then write to the company, then the company board to acknowledge through resolution and write back to the shareholder once amount received.
Does our Indian Law provides similar proceedure for the shareholders to give up rights under an advance?
Can any body help me to get this information please
Many thanks in advance
Regards
Ramesh
