Question

State any two uses of Securities Premium as stated in Section 52 of the Companies Act, 2013.

Answer 1

1. To write off preliminary expenses of the company.

2. To write off discount allowed or commission paid on the issue of shares or debentures.

3. To issue fully paid bonus shares to existing shareholders.

4. To provide premium payable on redemption of preference shares or debentures.

5. To buy back own shares or securities under Section 68.