Question

Zee Ltd. intends to issue 10,00,000 Equity Shares of Rs. 10 each to public for subscription. The management was suggested by the accountant Rahul that shares should be issued at 10% discount so that shares are subscribed in full. The management did not accept the suggestion of Rahul. What must be the reason for not accepting the suggestion?

Answer 1

The reason for not accepting the suggestion of accountant Rahul must have been that Section 53 of the Companies Act, 2013 does not permit issue of shares at discount.