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shares issued on premium

AMIT AGARWAL (learner) (114 Points)

15 July 2010

hi friends.....

plse tell me, can the first allotment of shares can be made at premium after the incorporation in case of pvt ltd co's....if a company is incorporated with capital of Rs.100000/- (10000 shares @ 10), can the first allotment of shares can be made at premium of Rs.90/-, if the co. has not yet started the business operations....

plse clarify clearly with sections & case laws if possible....

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3 Replies

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 15 July 2010

Yes,

and Most Companies Do The Same Only.

Keval Shah (CA-Final) (306 Points)
Replied 15 July 2010

Hi Amit,

You can issue the shares at premium as per sec. 78. there is no condition or restriction regarding issue of shares at premium.

But there must be a market for issue that shares at premium.

Regards.

Yogesh Bhatt (Company Secretary) (475 Points)
Replied 15 July 2010

Originally posted by : Keval Shah
	Hi Amit, You can issue the shares at premium as per sec. 78. there is no condition or restriction regarding issue of shares at premium. But there must be a market for issue that shares at premium. Regards.