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Under the Companies Act, 2013, which of the following statements about the issue of equity shares at a discount is correct?

A company cannot issue equity shares at a discount under the Companies Act, 2013, except sweat equity shares. A discounted issue of other shares is void, and no special resolution or percentage limit makes it permissible.

  1. AA company may issue equity shares at a discount to any class of shareholders with a special resolution
  2. BA company cannot issue equity shares at a discount, other than sweat equity sharesCorrect
  3. CA company may issue equity shares at a discount of up to 10% of face value
  4. DA company may issue equity shares at a discount if the discount is written off within three years

Explanation

The Companies Act, 2013 prohibits issue of shares at a discount, except sweat equity shares issued under the Act. Any other issue at a discount is void. The options allowing a limit of 10% or a special resolution are not provisions of the Act.

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