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
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Value of share to be issued
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.
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