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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4531
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have accrued salary from start-up company can I use it to

Customer Question

I have accrued salary from start-up company can I use it to obtain equity (common shares) in the company? If so how would this work?
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.
Dear Friend,
Hello and welcome. Thank you for providing an opportunity to assist you.
YES.. You can certainly do this. If against your outstanding accrued salary, if the company issues you Common Shares, it would be called "Issuance of Shares for Consideration Other Than Cash"..
This is certainly possible. Please refer the following link.
http://www.companylawclub.co.uk/topics/issuing_shares_for_consideration_other_than_cash.shtml
Just ask the issuing company to allot you shares for consideration other than cash. The company's secretarial department will take care of the process.
I am sure this would help.
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Warm Regards