Can my company in Cuttack issue shares at a premium to a new investor?
SU Asked by Sunita Reddy from India
Quick Answer
Issuing shares at a premium is permitted under Section 52 of the Companies Act, 2013, with the premium credited to a Securities Premium Account utilisable only for specified purposes.
Detailed Legal Analysis
Issuing shares at a premium is permitted under Section 52 of the Companies Act, 2013, with the premium credited to a Securities Premium Account utilisable only for specified purposes. The company in Cuttack must file Form PAS-3 with the RoC within 30 days of allotment.
Disputes are appealable to the NCLT and the Orissa High Court under Section 61. The valuation must comply with the prescribed rules for non-cash consideration.
The company's premises in Odisha must maintain Shops and Establishments registration under Odisha Rent Control Act 1962. The shares must be issued in compliance with the MOA and AOA of the company.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.