Question

Shares issued as sweat equity can be

1. Issued at par.
2. Issued at discount.
3. Issued at a premium.

Which of the following is correct?

Options

• Only (i) is correct.

• Both (i) and (iii) are correct.

• All are correct.

• Only (ii) is correct.

Answer 1

All are correct.

Explanation:

Sweat equity shares can be issued at par or at a premium as a reward for services or expertise. However, they cannot be issued at a discount under the law.