Issue of shares at premium
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 September 2012
Dear Sirs,
There is a public company having Rs. 50 lac as Authorised Capital. Can the company issue 500000 (five lac) shares of Rs. 10 each at a premium of Rs 40/- each? in this case:
1. What are the approvals does it have to take before such issue?
2. Does it have to increase its authorised Capital to accommodate the amount of share premium?
There is a public company having Rs. 50 lac as Authorised Capital. Can the company issue 500000 (five lac) shares of Rs. 10 each at a premium of Rs 40/- each? in this case:
1. What are the approvals does it have to take before such issue?
2. Does it have to increase its authorised Capital to accommodate the amount of share premium?
Ajay Mishra
(Expert)
18 September 2012
Hi
If the Company has authorised share capital of Rs. 50,00,000 then he can issue 500000 shares of Rs. 10/- at any premium.
So, you can issue up to 500000 shares @ Rs.10 with a premium of Rs. 40/-
If the Company has authorised share capital of Rs. 50,00,000 then he can issue 500000 shares of Rs. 10/- at any premium.
So, you can issue up to 500000 shares @ Rs.10 with a premium of Rs. 40/-
CS Ankur Srivastava
(Expert)
20 September 2012
Agree with Ajay ji.. No approval required.
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