Issue price of shares by pvt. ltd. company

[NAND LAL JAIN]

Our company is having share capital of Rs. 5 Lac and reserves of Rs. 50 Lac. Can we issue shares of Rs. 10/- at the rate of 20/- if no what are the parameters to be looked into.

[DR.MARIAPPAN GOVINDARAJAN]

Have you got clarified in this matter? If not please inform.

AI Summary

Share premium issuance: assess permissibility and corporate parameters before offering shares above nominal value. Whether a private limited company may issue equity shares at a price above their nominal value is raised in the context of a company with modest subscribed share capital and substantial reserves, and the enquiry seeks the parameters that should be examined before issuing shares at a premium.