Company cannot execute gift deed in favour of your son
2) company can sell property to your son by regs sale deed
Transfer property
I’m a Director and shareholder of private ltd company and i have a two factory premises in the name of pvt ltd. But now I want to transfer one factory premises to my sons name so pls guide me ASAP. or can i transfer the factory premises to my name. So pls guide and suggestions as per law and regulation.
Asked 6 years ago in Property Law
Religion: Hindu
10 Answers
what is the other way because there is not consideration will be come to company account.
Asked 6 years ago
there is no other way for transfer of property belonging to company in favour of your son
See the company has to pass resolution to transfer the property either in your name or in your son's name.
A board resolution signed by all directors has to be made. Then it can be transferred.
Consideration amount needs to be there.
Yes you can transfer the same through registered gift deed.
Dear client,
Pass broad resolution and gift it to your son. Otherwise without dissolution of company, not permitted .
1. IF the premises are reflected in the Balance Sheet of the Co., THEN it CANNOT be Transferred to "anybody", without a proper Sale Deed via a BOD resolution, wherein all the Income Tax implications have to be complied with.
2. The Co. can be duly winded up and the residual proceeds (including sale) can be appropriated in proper ratio amongst the share holders
3. Son can benefit IF he is a major share holder.
1. how many other directors and shareholders are there in your company?
2. company is a separate legal entity
3. company is separate and independent of its shareholders
4. so if both the properties are in the name of the company, then the company has to sell or transfer the property to your son
5. as there will be no consideration passing between the parties for the transaction, a gift in this case is not possible, as gift can be made only by an individual out of natural love and affection towards another individual
6. a company being an artificial person cannot be said to have any natural love and affection
7. so the only way is to show a consideration from the son to the company's account and execute a sale deed in favour of the son
8. however the above would require the company to pay capital gains tax on the consideration received
9. so the only way out would be to dissolve the company, transfer its assets to yourself and then do a gift deed in favour of your son
For transferring the assets of the company to your name, a Board of directors resolution will be required.
You may go through the AOA of the company in this regard.
This will reflect in the company's assets, hence it has to follow the procedures as laid down in the act.