Where a company issues shares at a discount (except in

Solution

Section 53 - Prohibition on issue of shares at discount 1) Except as provided in section 54, a company shall not issue shares at a discount.   (3)  Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent . per annum from the date of issue of such shares to the persons to whom such shares have been issued.