[aaykarbhavan] Companies cannot issue shares at Discount except Sweat Equity Shares

 

53. Prohibition on issue of shares at discount

(1) Except as provided in section 54, a company shall not issue shares at a discount.

(2) Any share issued by a company at a discounted price shall be void.

(3) Where a company contravenes the provisions of this section, the company shall

be punishable with fine which shall not be less than one lakh rupees but which may extend

to five lakh rupees and every officer who is in default shall be punishable with imprisonment

for a term which may extend to six months or with fine which shall not be less than one lakh

rupees but which may extend to five lakh rupees, or with both.

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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