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Sec 56

This query is : Resolved 
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(Querist)
27 March 2012 Under the new proposal U/s 56 in the Finance Bill, can a NEW company issue shares at premium and how ?
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
04 April 2012 Section 56(2)(viib) is applicable to PRIVATE COMPANIES only.

So, if a newly formed PUBLIC company issues shares at premium, then Section 56(2)(viib) is NOT attracted.
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swasti

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swasti (Querist)
05 April 2012 Thanks Sir, but suppose it is a closely held company then what would be the provision. The newly formed company would be having face value of its shares as Rs 10/-. can't it issue shares at premium?
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
05 April 2012 It cannot issue shares at premium.
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swasti

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swasti (Querist)
05 April 2012 Thanks a lot Sir.
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CA Siddhartha Bhardwaj

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CA Siddhartha Bhardwaj (Expert)
05 April 2012 You are welcome.
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