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Fresh issue of shares for face value

Pvt ltd 1789 views 3 replies

Naveen

Accountant

47 Points Joined April 2011

Hi, We are a Pvt Ltd Company, previously we had issued shares to a investor at a premium of 200/- (200 + face value 10/-).

Now we want to issue fresh shares to promoters for face value. Please let me know whether we can issue shares for face value, is so under what section of company law and procedure to do so.

Thanks in advancce

Replies (3)

Ajay Mishra

Company Secretary

74342 Points Joined March 2009

Threre is no restriction on issue of shares at face value. In case of private limited company, you can allot shares in Board Meeting.

Regards

Guest

To my mind, unless there are losses / diminishing returns in the company to support issue of shares at face value, company should not issue shares at face value if it has already issued shares at such a heavy premium earstwhile.

This also is against good corporate practices.