15 December 2012
My query is about utilisation of Share Premium Money by a private limited company for purposes othere than what as specified under section 78 of the Companies Act.
A private Limited company has utilised that share premium to finance its inventories, creditors and other day to day business expenses or to operate business operations of the Company.
So in that case is pvt company violating the provisions of section 78 of the co act?? and if yes then what is the solution now because the company has utilized that funds for such other purposes.
17 December 2012
if you have cash balance apart from share preimum in your account just make the whole transaction look as if you have used your own fund and not security preium, else no option for this.
CAclubindia
