Question

According to Section 52(2) of the Companies Act, 2013, Securities Premium cannot be utilised for ______.

Options

• Issue of partly paid bonus shares.

• Issue of fully paid bonus shares.

• Writing of discount on issue of Securities.

• Writing off preliminary expenses.

Answer 1

According to Section 52(2) of the Companies Act, 2013, Securities Premium cannot be utilised for issue of partly paid bonus shares.

Explanation:

Securities Premium can be used for issuing fully paid bonus shares, writing off preliminary expenses and other specified purposes. It cannot be used for issuing partly paid bonus shares.