PART IV - SHARES, DEBENTURES AND CHARGES DIVISION 3 - SHARES
Section 59. Power to issue shares at a discount.
(1) Subject to this section a company may issue shares at a discount of a class already issued if -
(a) the issue of the shares at a discount is authorized by resolution passed in general meeting of the company, and is confirmed by order of the Court;
(b) the resolution specifies the maximum rate of discount at which the shares are to be issued;
(c) at the date of the issue not less than one year has elapsed since the date on which the company was entitled to commence business; and
(d) the shares are issued within one month after the date on which the issue is confirmed by order of the Court or within such extended time as the Court allows.
(2) The Court, if having regard to all the circumstances of the case it thinks proper to do so, may make an order confirming the issue on such terms and conditions as it thinks fit.
(3) Every prospectus relating to the issue of the shares shall contain particulars of the discount allowed or of so much of that discount as has not been written off at the date of the issue of the prospectus.
(4) Notwithstanding any provision of its articles, a company shall not issue at a discount shares of any class unless it first offers the shares to every holder of shares of that class in the company proportionately to the number of those shares held by him.
(5) Every such offer shall be made by notice specifying the number of shares to which the member is entitled and limiting a time not being less than twenty-one days within which the offer may be accepted.
(6) If any such offer is not accepted within the time limited by the notice the shares may be issued on terms not more favourable than those offered to the shareholders.
(7) If default is made in complying with this section, the company and every officer of the company who is in default shall be guilty of an offence against this Act.