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Value of share to be issued

388 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.


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