Issuing Shares For Expertise

Summary

Issuing shares to a Managing Director for technical know-how is valid under the Companies Act, 2013, if approved by a special resolution and meets private placement criteria. Objections from 15% of the board or shareholders do not invalidate the issuance if the majority approves it. Technical know-how includes proprietary technologies, trade secrets, specialized training, or innovative processes.

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Whether issue of share capital to the managing director for technical know how despite objection from *% of the shareholders in a public company stand valid according to comapanies act *
- Section *(*) of the Companies Act, *: A company can issue shares to any persons, if authorized by a special resolution.
- Section *: Private placement requires approval by the board and shareholders.
- The objection from *% of the shareholders does not invalidate the issuance if the majority approves it.
Where are you located? This can help in understanding if there are any additional local regulations.
Whether issue of shares to managing director to compensate his technical know how can be considered private placement
The issue of shares to a managing director can be considered a private placement under Section * of the Companies Act, *, if it meets the following criteria:
- It is made to a select group of persons.
- It requires approval by the board and shareholders.
- It adheres to the prescribed conditions and procedures.
Could you please specify your location to see if there are any additional local regulations?
Issuing of shares to compensate for technical know how of the MD valid
Case Rating: *.
The issuance of shares to the Managing Director (MD) for technical know-how can be valid under certain conditions according to the Companies Act, *:
- Section *(*): Requires a special resolution for issuance.
- Section *: Private placement requires board and shareholder approval.
- The objection from *% of the shareholders is not sufficient to invalidate the issuance if the majority approves it.
Where are you located? This will help determine if there are additional local regulations that may apply.
What is considered as technical know how provided by MD in a company
Technical know-how refers to specialized knowledge, skills, or expertise that a Managing Director (MD) brings to the company. This can include:
- Proprietary technologies
- Trade secrets
- Specialized training or skills
- Innovative processes or techniques
To provide more tailored guidance, could you please specify your location?