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Allotment of shares to directors by pvt ltd co at <mkt price

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(Querist)
20 November 2012 Can a private limited company issue shares to its promoter director at price lower then which it was issued to other shareholders(i.e. less then fair market value)?

What are the requirements for this under companies act?
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Ajay Mishra

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Ajay Mishra (Expert)
20 November 2012 Hi

At the time of allotment of shares the issue price will be derived by auditor of the company and the shares will be issued at that price to promoter, it may be possible that it can be lower than the price issued to other shareholders.
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