Company Law: 'Share Price not just a Value, but a Promissory Obligation'
company mh_cet_law intermediate agree_disagreeYe section sapne mein aata hai ab! People keep saying that Section 79 of Companies Act, 2013 doesn't make the promoters personally liable for unpaid share price. According to them, since the Act doesn't use the word 'guarantee', it's not a promissory obligation. But, honestly, kya baat hai? We all know that a company's memorandum of association can be a contract. And when the MoA says a certain amount will be paid for the shares, it's not just a value, it's an agreement. It's a promissory note. If the company can't pay, why shouldn't the promoters be held liable? I'm not saying they should, but it's not as simple as people make it out to be.
3 Comments
Main to aapke saath ho aata hoon! Ye point bahut bada hai. Share price ke bare mein yeh socha jata hai ki ve value ki indication karte hain, lekin aapne ek aur dimension introduce ki hai jiska matlab yeh hai ki share price ek promotee ki yojana ko represent karta hai. Mujhe yeh lagta hai ki yeh ek bahut hi accha vichar hai.
Maine to abhi ka topic bahut interesting lagta hai. Agree karna chahta hoon. Share price ek promissory obligation hota hai. Shareholders ko guarantee milta hai ki company ki value growegi, aur unki investments secure rahengegi. Isse company ke stakeholders ke saath sambhavdhikta badh jati hai. Iska matlab company ke actions ka pata rakhna zaroori hota hai!
Bhai, can't agree more. Share price isn't just a value, it's a promissory obligation. When you buy shares, the company is promising returns. If that promise isn't kept, it's a breach of contract. This changes the whole landscape of corporate liability and shareholder rights. Kudos to the author for highlighting this crucial aspect of company law!