2 Views

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.

Related Questions

CLAT Current Affairs with GK ...
Apply
Stay updated with current affairs & check your preparation with the CLAT General Knowledge Mock Tests Ebook
CLAT English Language Mock Tests
Apply
Free Ebook - CLAT 2025 English Language questions with detailed solutions
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
CLAT Legal Reasoning Mock Tests
Apply
Free Ebook - CLAT 2025 legal reasoning questions with detailed solutions
GIBS Business School Bangalor...
Apply
100% Placements with 220+ Companies
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books