For advice and advice when issuing shares for cash, please visit the Company Law Solutions website. The company may award shares to insurers, developers or other special service organizations for payment of their compensation or for any costs they incur. The review procedure to be followed in such a case is that the shares may also be issued in exchange for consideration other than cash. Sellers, developers, insurers, etc., may be assigned shares instead of making payments. The review procedure in this context includes reviewing the contract, dissolving the steering committee, reviewing journal notes and reviewing the prospectus. An important aspect that you should keep in mind when issuing shares against other that cash is valuation. In this context, if one refers to the valuation, one hears (a) the valuation of the shares (if they are offered in exchange for a bonus) and b) the valuation of the services or assets on the basis of which those shares were awarded. In practice, this can be a difficult and complex area. All legal requirements and cash allocation procedures for shares must be met, but there will generally be additional considerations. A company may issue shares against non-cash counterparties. Common examples are the issuance of shares in exchange for real estate, assets that the company needs or (for example. B in one acquisition) of shares in another company. CA 2006, sec582 (1) provides that shares awarded by a company and any bonuses may be paid in cash or in monetary value (including value and know-how).
If shares are issued in exchange for a scriptural consideration, it should be specified when the allowances are returned (form SH01) and provide the details of the consideration. The issuance of shares for cash should be distinguished from a gift, because in a currency charged for remuneration for remuneration, there is a consideration that is not in cash, when there is absolutely no consideration for a gift. Such a person cannot benefit from stock options for employees (since they are not “employees” of the company). This is also a problem for developer directors. Promoter directors cannot receive ESOPs because, because of their controlling position in the company, they are not technically in the same category of people as workers. The issuance of shares against a consideration other than cash is therefore a viable alternative for these individuals. Shares issued in exchange for consideration other than cash can be created when a company issues shares for payment to sellers; either to project proponents who have incurred provisional costs or to insurers for payment of a signed commission, etc. How do you evaluate these actions (against against against money)? 2. It should review the prospectus to determine how the purchase benefit is paid and whether shares have been awarded with a premium or discount. If so, it should check whether the required legal formalities have been properly complied with. In addition, the issuance of shares against another cash payment should not be confused with the issuance of shares with a discount.
The issuance of shares to your technical advisor for free services is a share issue against a remunerated consideration (in which he does not even pay the face value), while the issuance of shares with a discount, for example, is the issuance of shares worth 35%. 10%. Copying contracts with sellers, project proponents, insurers, etc., should be checked by the legal auditor to ensure that the award is made in accordance with the agreements. The amount of the purchase benefit for the sellers, the type and amount of consideration for project proponents, compensation to insurers would be mentioned in their respective agreements. Shares may be issued against a consideration other than cash in the following circumstances: 1.