Issue of Shares in Private Limited company

Can a private limited company issue shares to one of its directors for providing collateral security for obtaining project finance from financial institution as only one of the director has provided all the security and wants  additional shares to be allotted against such collateral security?

If the yes what should be the basis of valuation of security against which shares to be issued?

Will the shares be issued at face value only ?

Replies (2)
Ya shares can be issue for consideration other than cash.

But what will be taken as consideration for issue of shares?

Value of Collateral Security Provided?

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