Can private company issue shares with premium
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 September 2013
Is it possible to issue shares with premium by a newly incorporated private company ( not listed). These shares will be sold among the friends and promoters of the Company.
Is there any restrictions to do so in any Act? Please inform if there is any case laws regarding the situation.
Is it required that the company should have profit?
Is there any restrictions to do so in any Act? Please inform if there is any case laws regarding the situation.
Is it required that the company should have profit?
Ajay Mishra
(Expert)
13 September 2013
Hi
If the fair value of your shares if derived by Chartered Accountant and which is more than face value of shares then you can issue it on premium.
It is not mandatory that the company have profit. You can issue shares at premium on loss of company.
If the fair value of your shares if derived by Chartered Accountant and which is more than face value of shares then you can issue it on premium.
It is not mandatory that the company have profit. You can issue shares at premium on loss of company.
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