Companies Act, 1956

Section - 76 - Power to pay certain commissions and prohibition of payment of all other commissions, discounts, etc.

Commissions and discounts

Power to pay certain commissions and prohibition of payment of all other commissions, discounts, etc.

76.   (1) A company may pay a commission to any person in consideration of—

         (a)  his subscribing or agreeing to subscribe, whether absolutely or conditionally, for any shares in, or debentures of, the company, or

         (b)  his procuring or agreeing to procure subscriptions, whether absolute or conditional, for any shares in, or debentures of, the company, if the following conditions are fulfilled, namely :—

          (i)  the payment of the commission is authorised by the articles;

         (ii)  the commission paid or agreed to be paid does not exceed in the case of shares, five per cent of the price at which the shares are issued or the amount or rate .... To read the full section download the app from Google Play store