Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Exception in sec 53

mayank verma (65 Points)

14 April 2018

Can a company issue sweat equity shares at discount? i.e. less than face value of shares ?

Reply
Follow
Share

3 Replies

Vivek Vadwana (0 Points)
Replied 14 April 2018

yes. company can issue sweat equity shares at discount . for further query refer section 54

Upgrade to CAclubindia Pro. Subscribe Now!

Hareshwar Vaity (0 Points)
Replied 15 April 2018

yes company issued sweet equity sheres at discount because is not a public issue

Chirag (Professional) (1979 Points)
Replied 15 April 2018

Only sweat equity shares can be issued at discount On FV & With companies amendment act,2017 One new sub section 53(2A) is inserted which provides issue of share at discount to Its creditors pursuant to any statutory resolution plan or debt restructuring plan as per guidelines/regulations/directions of RBI ,......Section 53(2) Also amemd the earlier "Discounted Price" To "Discount" So as to mean less than FV.