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    Question

    As per companies Act 2013, which of the following statements are correct?

    1. A company shall not issue shares at a discount except sweat shares.

    2. Sweat equity shares are equity shares issued by a company to its employees or directors at a discount.

    3. A penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less.

    A 1 and 2 only Correct Answer Incorrect Answer
    B 1 and 3 only Correct Answer Incorrect Answer
    C 2 and 3 only Correct Answer Incorrect Answer
    D 3 only Correct Answer Incorrect Answer
    E All correct Correct Answer Incorrect Answer

    Solution

    These provisions are given in the Section 53 and 54 of the Companies Act 2013. Section 55: Issue and redemption of preference shares. Section 56: Transfer and transmission of securities.

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