15 Questions
What is the consequence if a company issues shares at a discounted price without meeting the conditions specified in Section 53 of the Companies Act, 2013?
The discounted shares are considered void
According to Section 53 of the Companies Act, 2013, under what circumstance can a company issue shares at a discount?
When the company's debt is converted into shares as per statutory resolution plan or debt restructuring scheme
Under what circumstances can a company issue shares at a discount to its creditors, as per the Companies Act, 2013?
When its debt is converted into shares in accordance with statutory resolution plan or debt restructuring scheme
What is the exception mentioned in Section 53 of the Companies Act, 2013, regarding issuing shares at a discount?
Issuing sweat equity shares as per Section 54 of the Companies Act, 2013
What regulatory authority is responsible for specifying guidelines or directions for debt restructuring and issuance of shares at a discount, as per Section 53 of the Companies Act, 2013?
Reserve Bank of India (RBI)
What is the consequence if a company issues shares at a discount without complying with the conditions specified in Section 53 of the Companies Act, 2013?
The company and its officers are punishable with a fine
What penalty may a company and its defaulting officers be liable to if the company fails to comply with the provisions related to issuing shares at a discount?
An amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less
What is the rate of interest applicable for refunding monies received from issuing shares at a discount?
12% per annum
Which authority's guidelines or directions should be followed if a company issues shares at a discount to its creditors when its debt is converted into shares?
Reserve Bank of India
Which rule prescribes the other matters to be included in the auditor’s report?
Rule 11 of the Companies (Audit and Auditors) Rules, 2014
In the auditor’s report, what matter should include their views and comments according to Rule 11 of the Companies (Audit and Auditors) Rules, 2014?
Impact of pending litigations on financial position
Under Rule 11, what should be verified by the auditor in relation to long term contracts including derivative contracts?
Provision for material foreseeable losses
According to Rule 11, what should the auditor check regarding transferring amounts to the Investor Education and Protection Fund?
Timely transfer of all funds without any delay
Which matters are specifically mentioned in point (iv) of rule 11 for inclusion in the auditor’s report?
"Whether funds have been advanced or loaned or invested by the company"
"Ultimate Beneficiaries" referred in point (iv) of rule 11 are associated with which entities according to the text?
"Foreign entities"
Test your knowledge about the regulations and provisions regarding shares issued at a discount as per Section 53 of the Companies Act, 2013. This quiz covers the academic update on this topic and helps students understand the legal framework for issuing shares at a discount.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
