Ravi Gupta (Sr. Manager Finance) (55 Points)
13 July 2011Hi,
Pls Help me out, what is the application of share premium u/s 78 of company act 1956.
Ravi Gupta
pavani CA Final
(0)
(21 Points)
Replied 13 December 2011
CA Ketan Waghela
(Partner at Elite Educare)
(356 Points)
Replied 13 December 2011
Share Premium can be used for the following purpose
1. For issuing fully paid Bonus shares
2. To write off preliminary expense (discount on issue of shares or debentures etc.)
3. For buy back of shares
4. in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company.
CAclubindia
