- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
1)Sir, as we know that private company can issue shares against non cash consideration but it must NOT be unreasonable. So the shares can be issued at overvaluation as well as undervaluation?
2) If shares are issued against non cash consideration (overvaluation), then why it is called inadequate consideration, although, its value is above the nominal value of shares?
1) Yes
2) It depends from whose perspective you’re looking!
If you give me something worth $100 in exchange for me giving you something worth $90, that transaction represents a transaction at an over-valuation at the same time as it’s a transaction at an under-valuation
It depends from whose point of view you want to consider it
OK?
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘Private company and non cash consideration’ is closed to new replies.