Can a new company issue shares at premium ?

This query is : Resolved

Jagadish T G (Querist)
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15 February 2013 Our company is a new pvt. ltd. company wants to issue shares at a premium the face value of share is Rs.10 / share. I would like to know whether I can issue shares at a premium of Rs. 990/share and also what are the procedure that a company shall follow.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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15 February 2013 it can issue shares at premium.

Jagadish T G

Jagadish T G (Querist)
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15 February 2013 Thank you,

What are the revised provisions in respect of issue of shares at premium. What is the procedure that a company should follow.

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Jagadish T G

Jagadish T G (Querist)
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15 February 2013 What are the revised provisions in respect of issue of shares at premium. What is the procedure that a company should follow.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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15 February 2013 Section 78 deals with application of premium received.

As such I am not aware of any concrete rules regarding issue of shares at a premium.