Question

The issue of shares by a company on a discount is prohibited and thus, it shall be ____________

A Void Correct Answer Incorrect Answer
B Illegal Correct Answer Incorrect Answer
C Voidable Correct Answer Incorrect Answer
D Unenforceable Correct Answer Incorrect Answer

Solution

Companies Act Section 53. Prohibition on issue of shares at discount: (2) Any share issued by a company at a discount shall be void.

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