Company Law

1539 views 6 replies
Dear All,

I request you all to answer the following two queries?

1)Can a company issue shares at par and at premium at the same time?

2)In the case of sweat equity shares, how can the prompters ensure the receipt of  
  same after 1 year from the date of incorporation of the company?  
Replies (6)
  hi  i remember this is a cc qs paper ans is yes to both
dear ur second question is not clear to me. please clarify what do mean by "ensure  the recipt of sweat equity shares within 1 year"?

in reply to your 1st question, i would somewhat like to contradict what darshit had said.

please give me by an example so as to how you can practically issue shares both at par and at premium at the same time, the only way it can be done by issuing different classes of shares. otherwise please tell me as to what will be the price mentioned in the prospectus, even if you issue red herring prospectus, then before allotting shares a prospectus specifing the details of the price and the quanitity has to be mentioned in the prospectus.

what is meant by sweat equity shares
Just a thought what about an issue at discount and a preferential issue at the usual highest of negotiated price, 26 weeks high low or 2 weeks high low. That would in some cases amount to issue at discount and premium at the same time wouldn't it?
no, as per companies act,1956 a company cannot issue shares at premium  and at par i.e. either company had to issue shares at premium or at par...........
Hi Rahul, but in the case I am suggesting issue is at discount only the preferential allotment would be at a premium not on company's wishes but due to statutory regulations ..... I am not sure whether this is possible or not.  

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