Economics · Corporate Law
Under the Companies Act, 2013, despite the general prohibition under Section 53, under which of the following circumstances can a company validly issue shares at a discount?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Offering shares during an Initial Public Offering (IPO) to attract retail investors
- 2Issuing shares at a discount under Employee Stock Option Plans (ESOPs)
- 3Conversion of debt into shares in pursuance of any statutory resolution plan or debt restructuring scheme approved by the Reserve Bank of India✓
- 4Discounted issue approved by a special resolution passed by shareholders in a general meeting
Correct answer
Conversion of debt into shares in pursuance of any statutory resolution plan or debt restructuring scheme approved by the Reserve Bank of India
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