Prohibition on issue of shares at discount: discounted share issuances are void and attract corporate and officer penalties. A company is prohibited from issuing shares at a discount except as permitted by section 54; any share so issued is void. Contravention attracts prescribed corporate fines and penal consequences for every officer in default, including possible imprisonment for a term that may extend to six months and/or a fine.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Prohibition on issue of shares at discount: discounted share issuances are void and attract corporate and officer penalties.
A company is prohibited from issuing shares at a discount except as permitted by section 54; any share so issued is void. Contravention attracts prescribed corporate fines and penal consequences for every officer in default, including possible imprisonment for a term that may extend to six months and/or a fine.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.