cryptohunter
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In the Uk companies are generally not allowed to sell shares at a lower price than their face value. This is to keep the companys capital intact, as stated in Section 552 of the Companies Act 2006. The face value is the minimum amount for which shares can be sold.
But there are exceptions. Companies can sell shares at a discount if they get approval from the court. This involves a legal process and meeting certain conditions. The court might allow it if the discount is needed for the companys survival or to rebuild its business.
Companies thinking of selling discounted shares should get legal advice and follow the right steps to get court approval. Not following these rules can lead to serious consequences, like fines and legal issues. While it's possible in certain situations, selling shares at a discount in the UK is a controlled practice with specific conditions.
But there are exceptions. Companies can sell shares at a discount if they get approval from the court. This involves a legal process and meeting certain conditions. The court might allow it if the discount is needed for the companys survival or to rebuild its business.
Companies thinking of selling discounted shares should get legal advice and follow the right steps to get court approval. Not following these rules can lead to serious consequences, like fines and legal issues. While it's possible in certain situations, selling shares at a discount in the UK is a controlled practice with specific conditions.