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3 years ago

What is the maximum limit for discount on issue of debentures?

Business

1 answer:

Dmitry [639]3 years ago

6 0

Answer:

A company may issue shares at a discount i.e at a value below its par value. The following conditions must be satisfied in connection with the issue of shares at a discount :

The shares must be of a class already issued

Issue of the shares at discount must be authorised by resolution passed in the general meeting of company and sanctioned by the company law board.

The resolution must also specify the maximum rate of discount at which the shares are to be issued

Not less than one year has elapsed from the date on which the company was entitled to commence the business.

The shares to be issued at discount must issued within 2 months after the date on which issue is sanctioned by the company law board or within extended as may be allowed by the Company Law Board.

The discount must not exceed 10 percent unless the Company Law Board is of the opinion that the higher percentage of discount may be allowed in special circumstances of case.

Hope this helps

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Explanation:

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4 years ago

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jok3333 [9.3K]

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3 years ago

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Tomtit [17]

Answer:furniture manufacturer: wood→sanding→chair---C

Explanation:

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3 years ago

When the market rate is 8%, a company issues $50,000 of 9%, 10-year bonds dated January 1, 2017, that mature on December 31, 202

yanalaym [24]

Answer: Credit, $45,000

Explanation:

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3 years ago

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Zigmanuir [339]

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A savings account known as a certificate of deposit (CD) holds a fixed sum of money for a predetermined length of time, such as six months, a year, or five years. One of the most crucial factors is the certificate of deposit's maturity period.

To know more about certificate of deposit, click here:-

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1 year ago