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Fresh issue of shares for face value

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Naveen

Accountant

31 Points Posted on 20 February 2012

Hi, We are a Pvt Ltd Company, previously we had issued shares to a investor at a premium of 200/- (200 + face value 10/-).

Now we want to issue fresh shares to promoters for face value. Please let me know whether we can issue shares for face value, is so under what section of company law and procedure to do so.

Thanks in advancce

Replies (3)

Ajay Mishra

Company Secretary

60271 Points Posted on 20 February 2012

Threre is no restriction on issue of shares at face value. In case of private limited company, you can allot shares in Board Meeting.

Regards

Guest

Posted on 20 February 2012

To my mind, unless there are losses / diminishing returns in the company to support issue of shares at face value, company should not issue shares at face value if it has already issued shares at such a heavy premium earstwhile.

This also is against good corporate practices.