Value of share to be issued

402 views 3 replies

Dear All,

As per Companies Act 2013, can I issue equity and preference shares at a price below or above the value of shares as calculated by the registered valuer. If yes, then how it should be presented in Balance Sheet then.

 

Thanks 

Replies (3)

Certainly you can. If the shares arenvalued by a registered valuer, the same can be accordingly reflected in the B/S. i.e. where the valuation is above the face value, the difference can be reflected under the head "Security Premium  A/c" or vice versa.

For Example :

Nominal Value - 10

Value by Registered Valuer - 30

I I issue at Rs 50

What amount will be transferred in Share Capital account and security premium account?

And what will be the effect if i issue shares at Rs. 10/- only.

Pls reply..

 

Let's give more clarity on the topic. What are the circumstances that necessitate for valuation of shares. It should not be at whims and fancies.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 June 2026
Finance Manager- Chartered Accountant

Triveni Turbine Limited

Bengaluru

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 24 June 2026
ARTICLE ASSISTANT

BHUPINDER SHAH AND COMPANY

New Delhi

CA Inter

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details