Allotment of Shares
ABC Pvt Ltd is start up. investment banker (IB) will arrange investors for company. Investor will pay 1 % commission to IB. Company will not pay commission. Investor will pay Rs. 50 lac to co. Commission due to IB frm investor is Rs. 50,000. 1) Can co. allot shares of 49.50 lac to investor & Rs 50,000 to IB, as commission on behalf of investor. 2) If yes what is relevant section. 3) what is the procedure 4) If not section prohibiting.
really no restriction from company law if u get consent letter and application to be a member both from investor and investment banker
V S Datey