Explain five circumstances when shares may be issued at a discount.

Issue of shares at a discount
• The shares must belong to a class already issued by the company.
• One year must have elapsed from the date the company was entitled to commence business.
• It must be authorised by a resolution of members in general meeting
• The resolution must fix the maximum rate of discount at which the shares are to be issued.
• The issue must be approved by the court.
• The issue must be made within one month from the date of approval by the court or such extended time as the court may permit.
• The issue must be disclosed in the prospectus of the company.

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