Share premium
This query is : Resolved
26 December 2011
Please guide, whether Share Premium amount in Pvt Ltd company or Public Limited Company (closely held by family members - unlisted) can be utilized for the aquisition of Fixed Assets or for meeting short term funds requirement.
27 December 2011
In accordance with Section 78(2) of the Companies Act, 1956, the securities premium can be utilised only for the:-
1. issuing fully paid bonus shares to the members,
2. wrting off the balance of the preliminary expenses,
3. writting off commission paid or discount allowed for the issue of shares/ debentures,
4. for premium payable at the time of redemption of redeemable preference shares.
So, I hope Mr. Ojha you got your reply that company is not permitted to use this fund fot the purchase of Fuxed Assets/ for meeting short term funds requirement.
1. issuing fully paid bonus shares to the members,
2. wrting off the balance of the preliminary expenses,
3. writting off commission paid or discount allowed for the issue of shares/ debentures,
4. for premium payable at the time of redemption of redeemable preference shares.
So, I hope Mr. Ojha you got your reply that company is not permitted to use this fund fot the purchase of Fuxed Assets/ for meeting short term funds requirement.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- ECO SUPPLY REPORTIONG IN GSTR-1
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- CCFS 2026 Schemed
- Subscription paid to foreign customer
- Two seprate Invoice needed
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
