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Can equity shares be issued to a director who has incurred expenses on behalf of the company instead of reimbursement of expenses, if yes what is the procedure to issue

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Posted By: T.r.chadha & co. 9 year(s) ago

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Divesh Goyal

No Company cant issue shares to director inlieu of reimbursement of expenses. Because for allotment of shares Company have to follow section 62 in case of right issue of shares or if you are issuing shares to only one existing shares then you have to follow the process of prefrential allotment of shares as per section 42 and relevant rules.

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