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premium on shares

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(Querist)
26 July 2010 Hi,
What should be the maximum amount of premium on equity shares for private ltd co incorporated in june,2010.

Regards,
Abhilasha
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Sunil Kr. Sanganeria

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Sunil Kr. Sanganeria (Expert)
26 July 2010 There is no such law for maximum amounrt of premium to be charged by a Private limited Company. It depends on various factors such as book value of Company, earning of ompany, Management, Promotors etc.

Since the Company is incorporated in June, 2010 means no earning and past track of the Company nad Book value is also not more than 10/- per shares.

It is better to issue shares at Par.
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Rasesh

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Rasesh (Expert)
26 July 2010 Agree with expert. However, there is no bar on issue of equity shares at premium.
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