Companies Act, 1956

Section - 79 - Power to issue shares at a discount

Power to issue shares at a discount.

79.     (1) A company shall not issue shares at a discount except as provided in this section.

(2) A company may issue at a discount shares in the company of a class already issued, if the following conditions are fulfilled, namely,—

          (i)  the issue of the shares at a discount is authorised by a resolution passed by the company in general meeting and sanc­tioned by the [Central Government];

         (ii)  the resolution specifies the maximum rate of discount [* * *] at which the shares are to be issued :

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