Question

Maximum limit of Premium on shares is:

Options

• 5%

• 10%

• No Limit

• 100%

Answer 1

No Limit

Explanation:

There is no upper limit on the premium at which shares may be issued, according to the Companies Act of 2013. Market conditions, goodwill, and the company's financial standing all play a role. All that is necessary is that the premium amount be used in accordance with Section 52 and deposited to the Securities Premium Reserve.