Prohibition on issuing shares at discount: such issues are void, with mandated refund and penalties for defaulting company and officers. A company is prohibited from issuing shares at a discount and any such share is void, except where debt is converted into equity under a statutory resolution or debt restructuring scheme in accordance with applicable regulatory guidelines; contravention attracts penalties on the company and officers and requires refund of monies received with statutory interest from the date of issue.
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 issuing shares at discount: such issues are void, with mandated refund and penalties for defaulting company and officers.
A company is prohibited from issuing shares at a discount and any such share is void, except where debt is converted into equity under a statutory resolution or debt restructuring scheme in accordance with applicable regulatory guidelines; contravention attracts penalties on the company and officers and requires refund of monies received with statutory interest from the date of issue.
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