Inadequate consideration

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December 29, 2017 at 1:42 pm #426724
humai
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Sir, if ABC ltd (private company) issue shares by accepting goods at overvalue, then here who is receiving inadequate consideration? member or company?
December 29, 2017 at 3:18 pm #426744
MikeLittle
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The company is receiving goods that have been valued at a figure greater than they are worth

Imagine this:

The company has agreed to issue $10,000 shares in exchange for a waste paper bin

Now ask: “Who is receiving inadequate consideration?”
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