Utilisation of Share Premium Account
This query is : Resolved
biren thakkar
(Querist)
08 September 2009
Dear Sirs / Madam,
As per section 78 of the Companies act share premium account can utilised only as per the act. but Want you to ask that Share Premium Amount lying with company can be utilised for expansion purpose or paying of day to day expenses also.
if not than what are the penalty proviosion related to them & to whom, if it is applicable.
As per section 78 of the Companies act share premium account can utilised only as per the act. but Want you to ask that Share Premium Amount lying with company can be utilised for expansion purpose or paying of day to day expenses also.
if not than what are the penalty proviosion related to them & to whom, if it is applicable.
08 September 2009
No it can not be. Penalty would be so high that your purpose could not be solved if yyu use it for other purposes
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Ankur Garg
(Expert)
08 September 2009
If no Penalty is prescribed in particular section then Penalty u/s 629A of the companies act, 1956 would be applicable.
As section 78 is silent about penalty hence section 629A would be applicable in your case.
Regards
As section 78 is silent about penalty hence section 629A would be applicable in your case.
Regards
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