Issue of shares @ premium by loss making unlisted public co.

This query is : Resolved

K S Sainath (Querist)
Follow

19 October 2012 Hi

Can anyone help me out in this regard. Can a Loss Making Unlisted Public Company issue shares @ premium within the Authorised Capital Limit?

Please help me out this regard.

Regards,

sainath

Mukta Suyal

Mukta Suyal (Expert)
Follow

20 October 2012 Section 78 deals with the issue of shares at premium and there is no restriction that only a profit making company can issue shares at premium. Hence, in your case a loss making company can issue shares at premium.

But, the company should be in a position to justify about the premium. If a company has assets or future earning prospects then it can justify its premium.

Regards
CS Mukta Suyal