Equity Shares/ Preference Shares / Debentures
Sujal Jain (30 Points)
23 October 2021
What cannot be issued at a discount ?
4 Replies
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 October 2021
I'll take a chance, all three of them can be issued at discount
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 23 October 2021
s.53 of Companies Act 2013 allows Company for issue of shares at a discount.
S.53 of the Act
It clearly prohibits the issue of shares at discount as it states in its clause (2) that any share (which means either equity share or preference share) issued by a company at a discounted price shall be void.
It also provides in its clause (3) for penalty, to a company or officer in default, an amount equal to the amount raised through such issue of shares at discount or five lakh rupees, whichever is less. The company shall also be liable to refund all monies received with interest at 12% p.a from date of issue of such shares to the persons to whom such shares have been issued.
iPleaders Blog - Can Shares be issued at a Discount? When?
This is the difference between law and accounting
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 23 October 2021
I think section 53 of the companies act 2013 prohibites , please refer section .
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