Transfer/gifting the Pvt ltd co. Property to director's daughter
17-Dec-2023 (In Property Law)
We have a Pvt limited company which is not functioning since 2005 but alive in ROC records. There are only two directors who are husband and wife and also promotor directors. No statutory obligations on the property. All shareholders are close relatives and good friends. There is a piece of land registered on the name of the company. On the occasion of our daughter's wedding we want to gift this land to her. A gift deed between the company and individual is lagally valid.. if yes what are documents to be executed.. if gift deed is not possible then, what is the best possible way to transfer the property to our only kid. It is the only source for wedding gift and right now we don't want to sale this property as an industrial corridor announcement is expected by the govt. during the electrons time next year. Pls help us out by guiding to proper channel..thank you..
Without seeing the memorandum of articles of association of your company it is very difficult to give opinion. Further in individual capacity you can't execute gift deed in your daughter as you are not the legal owner only your company is the Ower. If company articals permitted you can gift the property to your daughter on behalf of company.
Can a company buy property in name of director?
A company may purchase property on its behalf, and one of the Directors may act as the representative of the company. If the property is purchased by a Director in his/her own name, then it does NOT belong to the company. 07-Feb-2019
Can a company gift property to an employee?
Companies are allowed to make gifts and donations, but they must be regulated. Donations and gifts above a certain limit will become taxable. Section 56 of the IT Act, by certain clauses, allows for taxation in cases of transfers of shares without consideration above a specific amount. 09-Jan-2022
Can a partnership firm gift a property?
If the firm transfers its property to an associate during the existence of the company, it is considered a gift.
Can a company gift immovable property to an individual?
TPA 1882 does not require that a gift be made out of love or affection. A corporate person can gift a property under the explanation 1 of section 25, ICA1872, read in conjunction with TPA,1882. 10-May-2023
in order to sell the property in the name of a private limited company a general body meeting with 3/4th majority share holder agreeing to sell is to be taken usually company giving land in gift wont exists as company wont do any transaction without consideration so you need to firstly allow the resolution and take permission from roc and can execute agreement of sale cum gpa in your individual name and then can gift the property to your daughter
Articles of Association must allow it. The company has many directors and does not intend to dissolve.
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