Pvt ltd compny issuing shares against loan form individual

As per the company act, a  pvt. ltd. co. cannot issue shares to general public. They cannot procure money from general public. Public co. only can issue shares as per their copany policy. A co. secretary must & should sign.For public co. also SEBI  guilde lines are required.

Thanks mr rama chary,  i would like to know your address i mean which aplace . are you from hyderabad

mr srinivas

Under certain circumstances subject to certain rules and compliances, private limited company can issue shares to any other person for consideration other than cash duly the transaction reduced to writing by way of a contract and subject to articles of association of the company.

DR VEDULA GOPINATH  ADVOCATE AND CORPORATE ADVISOR  vgopinath2@yahoo.com 09848227926 Hybad

Basically, the company is taking a Loan of Rs.8.00 Lakhs and as a collateral, issuing Shares of the same amount plus an MOU and Agreement of Sale, that the shares can be redeemed as a Flat three years later. The entire transaction needs detailed scrutiny of the documents including Articles of  Association and Memorendum of Association etc. Only after that  a firm opinion about the deal can be given.

Hi mr  Sanjay kumar , your comment and fixing the whole issue in 2 sentences is great

further

1) company is not willing to show the article of association or memorondem of association.

2) on share certificate there is no secretary signature , still that share certificate will be valid

3) whole thing can lead to any type of scam and  will i loose money

all cos need not appoint co.secretaries..any 2 directors can sign share cert..can the co. show RBI/govt. permission to raise / collect funds from public?

these are all procedural issues.the main issue is what is the guarantee after  the promised period you will get back  your flat /money?

if they arrange irrevocable bank guarantee for the amount of your deposit plus interest for 3 years ,then only u agree for the deal..

banks can never go back on the bank  guarantees, which they issue.Then only .u r safe.

1) company is not willing to show the article of association or memorandum of association.

If you want to check MOA & AOA, you can download from MCA Site after paying 50 Rupees.

2) on share certificate there is no secretary signature , still that share certificate will be valid

Company Secretary is not mandatory to sign Share certificate.That is to be sign 2 directors and one authorised signatory.

3) whole thing can lead to any type of scam and  will i loose money.

You can check MCA site the share allotment has been properly filed with Registrar of Companies using Form 2. 

Nubina

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