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If company propose to issue shares of private placement /preferential basis then that case company need to comply with provisions the provisions of both section 42 and 62 of companies act, 2013, in that case : 1) is it compulsory to issue shares at premium ? 2) is it compulsory to obtain valuation certificate if company is existing company want to issue shares at par ? 3) In case of new company, can company issue shares at par and in that case valuation certificate is compulsory ? 4) In new company suppose valuation certificate obtained ant value comes Rs. 8/- per share than it is compulsory for the company to issue shares at discount ?

Section 62- Further issue of share capital.

Posted By: Vasant patel 10 year(s) ago

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RAMAMURTHY

It is not compulsory to issue shares at a premium. But the valuation has to be obtained for preferential issue. New company can issue shares at par since there would be no question of valuation. Issue of shares is prohibited at a discount as per section 53. Only Sweat equity shares could be issued without consideration. In the new Act, no discount issue is possible.

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