Question ID : 1351

Can a company come into existance with loans from directors and building in its balance shete on the date of incorporation?

Few people (all r directors) formed a pvt. ltd. co. its pre-corporation stage, they contributed their money and constructed a buildg on the nd of a director. The buildg was completed on 1st April 2001 and company was corporated 17th May 2001. When the buildg was constructed no ownership title was given to the buildg by the directors.

the company has given the same buildg on lease WEF 1st April 2001 and the company is enjoyg lease rentals till today. The directors have no objections and taken the stand that, the company owns the buildg by takg loans from directors.

technically,

Who is the owner of the buildg. Directors theire jot capacity or company? who has title to the buildg?

Can a company be corporated with loans from directors liability and buildg on its assets on the date of corporation.

the lease is matured and contuation is accepted by leasee. Is it void?

What is the solution to this situation. what options are avaible with the directors.What is the duty of auditors? '

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