Where any company fails to comply with the provisions of this section 53(3) of the Companies Act, 2013 in respect of the issue of shares at discount, such company and every officer who is in default shall be liable to a

CS Executive · Corporate and Management Accounting · PYQS · June 2023
Where any company fails to comply with the provisions of this section 53(3) of the Companies Act, 2013 in respect of the issue of shares at discount, such company and every officer who is in default shall be liable to a penalty which may extend to .........
(A) an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less
(B) an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is higher
(C) an amount equal to the amount raised through the issue of shares at a discount or fifty lakh rupees, whichever is less
(D) an amount equal to the amount raised through the issue of shares at a discount or fifty lakh rupees, whichever is higher

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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