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conditions for issue of shares at premium

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 April 2011 a pvt co has issued 7500 shares of rs. 100 each at rs. 475/- i.e. at premium of rs. 375/- per share. i want to know what are the conditions for pvt co to issue its shares at discount and also what procedure it have to follow? reply urgently.
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CA Sumat Singhal

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CA Sumat Singhal (Expert)
12 July 2011 Yes. It is also very much possible.no justification required.
It is possible to issue the shares at a premium by a private limited company even if it a newly formed company.
However, issue of shares on discount is not possible for a newly formed company as per section 79.
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CA Sumat Singhal

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CA Sumat Singhal (Expert)
12 July 2011 Yes. It is also very much possible.no justification required.
It is possible to issue the shares at a premium by a private limited company even if it a newly formed company.
However, issue of shares on discount is not possible for a newly formed company as per section 79.
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