Securities premium account use limited to specified corporate purposes, including bonus shares, issue costs, redemption premium, and buyback. Premiums on issued shares must be transferred to a securities premium account treated as paid-up capital for reduction purposes, but the account may be applied to specified corporate purposes: issuing fully paid bonus shares, writing off preliminary expenses, writing off expenses/commission/discount on issues of shares or debentures, providing for redemption premiums, and purchasing the company's own shares or securities; prescribed classes of companies complying with accounting standards may apply the account specifically for paying up unissued equity as bonus shares, writing off equity issue expenses/commissions/discounts, and share purchase under buyback rules.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Securities premium account use limited to specified corporate purposes, including bonus shares, issue costs, redemption premium, and buyback.
Premiums on issued shares must be transferred to a securities premium account treated as paid-up capital for reduction purposes, but the account may be applied to specified corporate purposes: issuing fully paid bonus shares, writing off preliminary expenses, writing off expenses/commission/discount on issues of shares or debentures, providing for redemption premiums, and purchasing the company's own shares or securities; prescribed classes of companies complying with accounting standards may apply the account specifically for paying up unissued equity as bonus shares, writing off equity issue expenses/commissions/discounts, and share purchase under buyback rules.
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