Under Section 53 of the Companies Act, 2013, a company shall not issue shares at a discount except in the case of an issue of:
Select Your Answer (Keyboard: A, B, C, D)
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Corporate and Other LawsMCQQuestion 12527 of 300
All Questions Correct Answer
✅ Option A — Sweat Equity Shares issued under Section 54
All Options:
- ASweat Equity Shares issued under Section 54 ✓
- BRights Shares issued under Section 62
- CBonus Shares issued under Section 63
- DPreference Shares issued under Section 55
Detailed Solution & Explanation
Correct Answer: Option **A** (Sweat Equity Shares issued under Section 54)
**Statutory Provision (Section 53 - Prohibition on Issue of Shares at Discount):**
Section 53(1) and (2) void any issue of shares at discount, except as provided in Section 54 for sweat equity shares. Any contravention subjects the company and officers to penalties.
Therefore, Option A is the correct legal position under the ICAI curriculum.
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