Share premium

Siddharth (Student) (128 Points)

22 August 2013  

Dear Friends,

During internal audit of a pvt company....i came across share premium account.

As per sec 78 of Companies Act, this amount cant be used for day-to-day activities of business...so how can i ensure that the same is followed by the company..

I mean what should a company do with such premium money...whether they can use it for any investment....?

If not what can a pvt company do with such amount.

Please Discuss.