Issue of shares for first time

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Charan Singh (Querist)
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01 December 2015 Can a private company issue share to its promoters at Par and to others at Premium when the issue of shares is for the first time.

Please also provide legal references in support of your answers.

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Pratik Shah

Pratik Shah (Expert)
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01 December 2015 No. It is not possible. Single Issue can not have shares of different values.
Alternatively, you need to have two Issues, one for promoters and one for other persons.

Charan Singh

Charan Singh (Querist)
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03 December 2015 Thanks

Please provide the section/order/notification etc that restricts.