Under section 59 (i) of the Companies Act, it shall be lawful for a company to issue at a discount shares in the company of a class already issued provided that:
1. The issue of the shares of a discount shall be authorized resolution passed in general meeting for the company, and shall be sanctioned the court; and
2. The resolution shall specify the maximum rate of discount at which the shares are to be issued; and
3. Not less than one yea shall, at the date of the issue, have elapsed since the date on which the company was entitled to commence business; and
4. The shares to be issued at a discount shall be issued within one month after the date on which the issue is sanctioned the court or within such extended time as the court may allow.