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Company Accounts

suman shil (33 Points)

24 June 2020

is securities premium account will first utilised in case of buy-back of shares?

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Akash kumar (Article) (35 Points)
Replied 25 June 2020

The Securities Premium Account can be used for the following purposes:

1) Issuing fully paid bonus shares to the members of the company.

2) Writing off the preliminary expenses of the company

3) Writing off the expenses of,or commission paid,or discount allowed on ,issue of shares or debentures of the company

4)Providing for the premium payable on the redemption of any redeemable preference shares or debentures of the company

5) For buy back of share.

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