why premium on redemption of preference share is not write off against capital reserve and securities premium
can we say..1. as capital reserve is reserve which cannot be used to pay off share holders
2. and securities premium is only for equity sh holders
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redemption of prefrence share
Replies (2)
1. capital reserve can not be used pay off share holder , because capital reserve is used only to set off against Capital loss
2 . Securities premium can not be used for all purpose , its been restricted to some specific use only .
you can redeem preference shares only they fully paid and at same you have create Capital Redemption Reserve out of profit ever year up to the redemption year for redemption of preference Shears .
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