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    Question

    The issue of shares by a company on a discount is

    prohibited and thus, it shall be ____________
    A Void Correct Answer Incorrect Answer
    B Illegal Correct Answer Incorrect Answer
    C Voidable Correct Answer Incorrect Answer
    D Unenforceable Correct Answer Incorrect Answer
    E Unauthorized Correct Answer Incorrect Answer

    Solution

    Companies Act Section 53. Prohibition on issue of shares at discount: (2) Any share issued by a company at a discount shall be void.

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