alleryStart learning →A share issued by a company at a discount is treated as:
AVoidable by the holder
BValid but penalised
CValid after approval
DVoid and of no effect
Answer & Solution
Correct answer: D. Void and of no effect
The Act declares any share issued at a discount to be void.
Keep practising Company Accounts
Browse all Company Accounts questions for CA Foundation, or explore more Accounting topics.
Related questions
Investors were historically given what as evidence of share ownership?Putable preference shares let the holder, in some conditions, to:On liquidation, a preference share's claim is relative to common stock:Most preference shares carry which voting position?Convertible preference shares can be exchanged by holders for:Non-cumulative preference dividends, if unpaid in a year:Preference shares usually rank for dividend payment:A cumulative preference share means unpaid dividend will: