shares issued at premium

[d.v. gupta]

we have formed a new pvt ltd co.. Can we issue shares to individual at a premium of Rs. 90 in new company.

AI Summary

Issuing Shares at Premium Requires Justification Based on Promoter Experience or Other Factors, Despite No Legal Restrictions A query was raised regarding the issuance of shares at a premium of Rs. 90 in a newly formed private limited company. The response indicated that while there is no legal restriction on issuing shares at a premium, it is important to justify the premium. This justification could be based on the experience of the promoters or other relevant factors that would convince an investor to purchase shares at a price significantly higher than their fair value.