How a Company may issue the shares? |
By Private Placement of Shares By Public Subscription of Shares For Consideration other than cash All of the above |
All of the above |
The correct answer is option 4- All of the above. A company can issue shares in multiple ways, as allowed under the Companies Act, 2013. Private Placement of Shares- The Companies Act, 2013 (Section 42) describes Private Placement as an offer of securities or invitation to subscribe securities to a select group of persons through issue of private placement offer letter. Public Subscription of Shares- Shares are offered to the general public. It requires issuing a prospectus. For Consideration Other Than Cash- Shares are said to be issued for consideration other than cash when a company purchases business, or some asset/assets, and the vendors have agreed to receive payment in the form of fully paid shares of a company. |