conditions for issue of shares at premium
This query is : Resolved
Querist : Anonymous
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.
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.
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.
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.
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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