Shares except ESOP can be issued: (A) at Premium (B) at Par (C) for o…

Shares except ESOP can be issued:

(A) at Premium
(B) at Par
(C) for other than cash

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A), (B), and (C)

A company may issue its shares at par (at face value) or at a premium (above face value). Apart from issuing them for cash, it may also issue fully paid shares to a vendor in payment for assets bought, that is, for consideration other than cash. All three are open to it.

(A) at Premium Correct. When the issue price is more than the nominal value, the excess is the premium.

(B) at Par Correct. Shares are issued at par when the issue price equals the nominal value.

(C) for other than cash Correct. A vendor may accept fully paid shares instead of cash for the assets sold to the company.

NCERT (2026-27 edition):
Issue of Shares – “… Shares of a company are issued either at par or at a premium. Shares are to be issued at par when their issue price is exactly equal to their nominal value according to the terms and conditions of issue. When the shares of a company are issued more than its nominal value (face value), the excess amount is called premium.”

NCERT (2026-27 edition):
Issue of Shares for Consideration other than Cash – “There are instances where a company enters into an arrangement with the vendors from whom it has purchased assets, whereby the latter agrees to accept, the payment in the form of fully paid shares of the company issued to them. Normally, no such cash is received for issue of shares. These shares can also be issued either at par, at premium or at discount, and the number of shares to be issued will depend upon the price at which the shares are issued and the amount payable to the vendor.”