UGC NET COMMERCE June 2019 Q12
- Option : A
- Explanation : Securities premium, similar to share capital, can’t be returned to the shareholders. However, Section 52 of the Companies Act, 2013 provides that the balance in the securities premium account can be utilized for the following purposes:
1. Issuing fully paid bonus shares.
2. Writing off the preliminary expenses of the company.
3. Writing off the expenses of, or commission paid or discount allowed on, an issue of shares or debenture of the company.
4. Providing for the premium payable on the redemption of redeembale preference shares or debentures of the company.
