Pricing of Issue of Further Shares by Unlisted Companies

Bala Ca (Assistant Manager) (42 Points)

30 May 2008  

An unlisted public company issued 100000 Shares at par to the directors during the financial year wide board resolution. But previously 3 years back the same class of shares has been issued at a premium to outsiders.

A) Whether the company can issue shares at par to the directors?

B) Whether the investors are aggrieved by such issue of shares to directors?

C) Is there any violation of Companies Act or other guidelines?

D) If so what are the consequences?

Please give me ur valuable suggesstions regaring this issue.