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Issue of shares at premium by loss making pvt co.

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Querist : Anonymous

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Querist : Anonymous (Querist)
25 June 2013 Hi,
1)Can loss making pvt ltd co. issue shares at premium.
2) the directors of company decided to issue shares at face value of Rs.10/- and at premium Rs.90/-.

does it possible?
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Ajay Mishra

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Ajay Mishra (Expert)
25 June 2013 Hi

It is possible that a loss making company can issue share at premium but it can issue as per valuation of the shares. You can not issue automatically @ Rs. 100/-.

Please make valuation thereof, then issue at Rs. 100/-. You also check, what your articles says on it.
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