JAMB Accounting 2015 Objective — Question 42

Question 42 of 50 from the Joint Admissions and Matriculation Board (JAMB) Accounting 2015 Objective paper, with the correct answer and a full explanation.

Under which of these conditions can a company issue shares at a discount? (i) A resolution must be passed at a general meeting (ii) The amount of discount must be stated in the resolution (iii) The share must have existed for at least six years (iv) On the order of a court

A. I, II and III only
B. I, II and IV onlyCorrect
C. I, III and IV only
D. II, III and IV only

Explanation

A company can issue shares at a discount if a resolution is passed at a general meeting, the discount amount is stated/authorised in that resolution, and the company has existed for at least one year (not six, as one condition is misstated) — among the given choices, I, II and IV align most closely with the recognised conditions.

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