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Question : As per Section 53 of the Companies Act, 2013, the issue of shares at a discount shall be void, except in case of -

Option 1: A company may issue share at a discount to its creditors when its debt converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme.

Option 2: A company may issue share at a discount to its creditors when its debt converted into shares in pursuance of any statutory resolution plan or merger scheme.

Option 3: A company may issue share at a discount to its debtors when its debt converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme.

Option 4: None of the Above


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: A company may issue share at a discount to its creditors when its debt converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme.


Solution : As per Section 53 of the Companies Act, 2013, a company shall not issue shares at a discount, any shares issued by the company at a discount shall be void. However, the Company may issue shares at a discount to its creditors when its debt is converted into shares in pursuance of any statutory resolution plan or debt restructuring scheme.

Hence the correct answer is option 1.

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