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Can securities premium be freely distributed as dividend? - Accounts

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Question

Can securities premium be freely distributed as dividend?

Very Short Answer
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Solution

No, securities premiums cannot be paid out as dividends since the Companies Act severely restricts their usage and forbids any exceptions.

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Chapter 6: Company Accounts - Issue of Shares - SHORT ANSWER QUESTIONS [Page 6.147]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
SHORT ANSWER QUESTIONS | Q 25. | Page 6.147
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