Hi, can you settle /purchase shares of the director in lieu of assets of the company e.g car or plot ,
when company is still active and no returns filed by the company ?
welcomeoncloud9 (Director) 15 June 2011
Hi, can you settle /purchase shares of the director in lieu of assets of the company e.g car or plot ,
when company is still active and no returns filed by the company ?
sanjay kumar (BE/ LLM in Corporate Laws) 15 June 2011
The liabilities of the company are to be settled by the company and the liabilities of the Director are to be settled by the Director. Just as the liabilities of the Director cannot be settled by the company, the reverse is also true.
However, there are ways to achieve this. Like the company takes a loan to settle the liability and the Director pledges his shares as security for the loan of the company.
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