1.

In which circumstances do companies issue shares for consideration other than cash?

Answer»

In following situations company can issue shares for consideration other than cash.

  • For purchasing of any assets or business, company does not pay cash and issue shares.
  • When company issues shares in lieu of remuneration payable to promoters.
  • When company issues bonus shares to existing shareholders.
  • When company issues shares towards under-writing commission to underwriters.


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