Shares issued at discount

Corporate & Other Laws

What's the main reason that the shares are not to be issued at discount?

Shaviri Reddy

CA Inter

★ 1K+

30-Mar-23 12:57

620

Answers (4)

No payment to be made from capital of company.

Varun Mulay

CA Final

★ 39K+

30-Mar-23 13:04

Varun Mulay

No payment to be made from capital of company.

Could you elaborate?

Thread Starter

Shaviri Reddy

CA Inter

★ 1K+

30-Mar-23 13:14

Shareholders are liable to the extent of amount unpaid on shares. Companies may issue at discount and later call shareholders to pay amount in case of liquidation. Hence to protect the interest of shareholders, it is prohibited.

CA Suraj Lakhotia

Admin

03-Apr-23 10:39

CA Suraj Lakhotia Admin

Thank you sir

Thread Starter

Shaviri Reddy

CA Inter

★ 1K+

04-Apr-23 22:06