Multiple choice

Maximum amount that can be collected as premium as a percentage of face value is

  1. 20%

  2. 30%

  3. 40%

  4. unlimited

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

There is no limitation in the Comapnies Act,2013 on the amount maximum amount of premium on issue of shares. For example, a company in its growth stage enjoying a very good market reputation and making high profits can issue a share of Face Value of rs 10 at a premium of Rs. 990.