BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Legal Aspects of Business The Companies Act, 2013
What happens if a company issues shares at a discount in violation of Section 53 provisions?
1
The shares are automatically converted to preference shares
2
The issue is declared void and the company faces penalties
3
The directors must compensate the shareholders
4
The issue can proceed with shareholder approval
5
No action is required if the shareholders agree