What do we mean by issue of shares for consideration?
Answer:
In legal terms, "consideration" is the legal or pecuniary detriment which grounds a contract. Agreements that do not contain consideration are generally not legally enforcable, as they wind up being empty promises. For example, if I say "I promise to give you $50 if you promise to mow my lawn," that's an offer that seeks a promise, and the consideration would be your promise to mow my lawn, creating an obligation where none previously existed. But if I just say "I promise to give you $50," there is no contract, as the promise was not met by any consideration on your part.
Shares of stock have value and can be used as consideration for a contract. A company can "issue shares" of itself, giving the other party partial ownership of the company, as consideration for a contract.
Consideration basically means payment. If you do something for me, like agree to work for another year, I have to give you consideration as my side of the bargain. Maybe I give you money, maybe I issue shares of the company to you.
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