Podcast
Questions and Answers
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?
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 shareholders have the right to demand a refund for the excess amount paid
- The company is required to obtain approval from the Reserve Bank of India for the discounted issuance
- The company is obligated to compensate the existing shareholders for the discounted issuance
- The discounted shares are considered void (correct)
According to Section 53 of the Companies Act, 2013, under what circumstance can a company issue shares at a discount?
According to Section 53 of the Companies Act, 2013, under what circumstance can a company issue shares at a discount?
- When the company wants to reward its employees with sweat equity shares
- When the company wants to increase its cash reserves by selling shares at a discount
- When the company's debt is converted into shares as per statutory resolution plan or debt restructuring scheme (correct)
- When the company wants to attract new investors by offering discounted shares
Under what circumstances can a company issue shares at a discount to its creditors, as per the Companies Act, 2013?
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 (correct)
- When seeking approval from the Reserve Bank of India for debt restructuring
- In compliance with guidelines or directions specified by the Reserve Bank of India for debt conversion
- To settle outstanding debts with its creditors
What is the exception mentioned in Section 53 of the Companies Act, 2013, regarding issuing shares at a discount?
What is the exception mentioned in Section 53 of the Companies Act, 2013, regarding issuing shares at a discount?
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?
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?
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?
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?
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?
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?
What is the rate of interest applicable for refunding monies received from issuing shares at a discount?
What is the rate of interest applicable for refunding monies received from issuing shares at a discount?
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?
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?
Which rule prescribes the other matters to be included in the auditor’s report?
Which rule prescribes the other matters to be included in the auditor’s report?
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?
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?
Under Rule 11, what should be verified by the auditor in relation to long term contracts including derivative contracts?
Under Rule 11, what should be verified by the auditor in relation to long term contracts including derivative contracts?
According to Rule 11, what should the auditor check regarding transferring amounts to the Investor Education and Protection Fund?
According to Rule 11, what should the auditor check regarding transferring amounts to the Investor Education and Protection Fund?
Which matters are specifically mentioned in point (iv) of rule 11 for inclusion in the auditor’s report?
Which matters are specifically mentioned in point (iv) of rule 11 for inclusion in the auditor’s report?
"Ultimate Beneficiaries" referred in point (iv) of rule 11 are associated with which entities according to the text?
"Ultimate Beneficiaries" referred in point (iv) of rule 11 are associated with which entities according to the text?
