Question:
As per the provisions of Companies Act, 2013, Securities Premium cannot be utilized for:
As per the provisions of Companies Act, 2013, Securities Premium cannot be utilized for:
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Refer to Section 52 of the Companies Act, 2013, for the specific permitted utilizations of the Securities Premium account.
Updated On: Jan 28, 2025
- buy back of shares
- issue of partly paid bonus shares
- writing off discount on issue of debentures
- writing off preliminary expenses
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The Correct Option is B
Solution and Explanation
As per the provisions of the Companies Act, 2013, the Securities Premium can be utilized for:
1. Issuing fully paid bonus shares.
2. Writing off preliminary expenses.
3. Writing off the discount on the issue of debentures.
4. Buy-back of shares.
It cannot be used for issuing partly paid bonus shares, as such utilization is not permitted under the Act.
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