Alootment of shares

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

26 March 2011 Can we allot shares at a lower premium than the earlier alootment at a higher premium.
Example- If we allotted shares @500 in earlier allotment, then can we allot the shares at the rate of Rs. 100/- in the present allotment.

The company is unlisted public limited company.

Toshiba Sugandhi

Toshiba Sugandhi (Expert)
Follow

29 March 2011 first to decide Issue price is the decision of Board of Directors.

Second board should consider the book value as on the date of allotment.

Third the allotment should not be on the same date.

Lastly Company should have proper justification of the same.