Demerger/spinoff

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 September 2011 In a case of demerger whether,

a) share premium account of a demerged company can be used for issue of shares in a resulting/new company ?

b) shares in a new company can be issued at a premium crediting share premium acocunt?

c) since in a court approved demerger there will be lock in period for shares of new company but can we use share premium account for issue of bonus shares?

d) will these bonus shares would also be under lock in ?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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13 September 2011 Your case is to be guided by the judgement passed by the court all restriction are to be followed and till the period of restriction no fresh capital can be issued.