HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2025 30 May Shift 22026Accountancy
1 mark

Select the TRUE statement related to the issue/re-issue of equity shares.

  1. A
    Equity Shares cannot be issued at Discount.
  2. B
    Equity Shares can be re-issued at Discount.
  3. C
    Equity Shares cannot be issued at premium.
  4. D
    Equity Shares cannot be re-issued at premium.

Solution & Step-by-step Explanation

According to Section 53 of the Companies Act, 2013, companies are prohibited from making a fresh issue of shares at a discount. However, when a company re-issues shares that were previously forfeited, it is legally permitted to re-issue them at a discount, provided the discount amount does not exceed the amount received on those shares during their original issue.

Practice this question

Try it yourself before checking the explanation above.

Select the TRUE statement related to the issue/re-issue of equity shares.
A
Equity Shares cannot be issued at Discount.
B
Equity Shares can be re-issued at Discount.
C
Equity Shares cannot be issued at premium.
D
Equity Shares cannot be re-issued at premium.

Share This Question

Company AccountsShare CapitalIssue at Discount or Premium

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion