Question : Amount of securities premium can be utilized for.
Option 1: Writing off the preliminary expenses of the company
Option 2: Issuing bonus share to the shareholders of the company
Option 3: Buy back of its own shares
Option 4: All of the above
Answer (1)
22nd Jan, 2024
Correct Answer: All of the above
Solution : Answer = All of the above
According to Section 52(2) of the Companies Act, securities premium may be used wholly or in part for the following:
- Paying up in issued shares of the company to be issued to members of the company as fully paid-up bonus shares.
- Writing off the preliminary expenses of the company.
- Writing off the expenses of, or the commission paid or discount. allowed on, any shares or of any debentures of the company.
- Providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company.
- To buck its own equity shares.
Comments (0)
Related Questions
Trending Articles/News
