In Singapore context, what is the procedure for share capital injection in kind?

Question

Injection in kind is by way of assigning receivables to the company by allotee to exchange for shares. Need urgent reply by 11 Dec 07. Thank you!

Answer 1

In any allotment, the company secretary needs to pass a resolution by the directors approving the allotment to the allottee. In this case, he needs to go one step further since the allotment is for "other than in cash". The directors have to agree on the value of the receivables and the terms and conditions, e.g. what happens if there are bad debts?, etc. Once the resolution is passed, the allottee can become a member of the co. and be entered in the register of members.