Question

A company issues its shares at a premium under which section of Indian Companies Act, 2013?

• A. 78
• B. 52
• C. 53
• D. None of these

Hint:

Section 52 of Companies Act, 2013 governs Securities Premium Account.

Answer 1

The Correct Option is B

Step 1: Section reference.
As per the Indian Companies Act, 2013, issue of shares at a premium and its treatment is governed under Section 52.
Step 2: Use of securities premium.
Securities Premium Account can be used for: - Issuing fully paid bonus shares, - Writing off preliminary expenses, - Writing off premium on redemption of debentures, - Providing for buy-back of shares, etc.
Step 3: Conclude.
Therefore, issue of shares at premium is dealt under Section 52.
Final Answer: \[ \boxed{\text{Section 52}} \]