issue at premium

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CS Abhilasha Pandey (Querist)
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14 July 2010 Dear All,
I have to issue equity shares at premium in a pvt. ltd. company, date of incorporation of this company is 22/06/2010.
My Question is for which option I should go

1)issue 1,00,000 equity shares @ Rs.10/- as face value and Rs. 1500/- as premium.
OR
2)10,000 equity shares @10/-as face value and Rs. 15,000/- as premium.
Is there any limit for issue of shares at premium ?
Can I go for 2nd option ?

Regards,
Abhilasha

Ankur Garg

Ankur Garg (Expert)
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14 July 2010 In law there is no such limit on premium amount. But amount of premium should be reasonable to avoid any query from auditors and ROC.

Rs. 15000 is too much so it is advisable to go for option 1.

Regards

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CS Abhilasha Pandey

CS Abhilasha Pandey (Querist)
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14 July 2010 Thankyou.

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