30 points
Time management is very much important in IIT JAM. The eduncle test series for IIT JAM Mathematical Statistics helped me a lot in this portion. I am very thankful to the test series I bought from eduncle.
Nilanjan Bhowmick AIR 3, CSIR NET (Earth Science)
- UGC NET
- Commerce
Can any company issue sweet equity shares at discount?
can any company issue sweet equity shares at discount?
2 Answer(s)
Answer Now
- 0 Likes
- 2 Comments
- 0 Shares
-
Rucha rajesh shingvekar
![best-answer]()
These are issued by a Company to its Directors or Employees They can be issued at a dis count or for consideration other than cash
Do You Want Better RANK in Your Exam?
Start Your Preparations with Eduncle’s FREE Study Material
- Updated Syllabus, Paper Pattern & Full Exam Details
- Sample Theory of Most Important Topic
- Model Test Paper with Detailed Solutions
- Last 5 Years Question Papers & Answers
Sign Up to Download FREE Study Material Worth Rs. 500/-
Priya gulani Best Answer
Section 53 of the Companies Act, 2013 prescribes that Company shall not issue shares on discount. Any shares issued by the Company at a discount shall be void. However, there are certain circumstances where Company can issue shares at a discount: ♦ Issue of Sweat Equity Shares ♦ Issue of shares to the Creditors when the debt of the Company is converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme in accordance with any guidelines or regulations as provided by the Reserve Bank of India under Reserve Bank of India Act, 1934 or the Banking (Regulation) Act, 1949 Issue of Sweat Equity Shares “Sweat Equity Shares” means such equity shares as are issued by the Company to its Directors or Employees at a discount or for consideration, other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called.