04-12-2007, 06:15 PM
Dear Mahmood Sahib,
Certainly a company can use both the above methods to pay back the incorporation expenses incurred by the sponsors.
In my view, sponsors have incurred these expenses and paid out in cash on behalf of the company. Therefore, any shares issued to them would be categorized as "FULLY PAID IN CASH".
If there is any exception, please let me know.
Regards,
Kamran.
Certainly a company can use both the above methods to pay back the incorporation expenses incurred by the sponsors.
In my view, sponsors have incurred these expenses and paid out in cash on behalf of the company. Therefore, any shares issued to them would be categorized as "FULLY PAID IN CASH".
If there is any exception, please let me know.
Regards,
Kamran.
