How a Company may issue the shares?
Answer & explanation
Correct answer: option 4
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.