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In redemption of preference shares, to redeem the shares he opt to issue shares at premium and collect money.. Can I use the premium money collected at issue of shares to redeem the preference shares

Shalini Shalu

CMA Inter

★ 300

15-Aug-20 19:25

349

Answers (1)

As per Section 52(2) of the Companies Act, 2013, Securities Premium Account may be used for the purpose mentioned therein like, issue of bonus shares, writing off preliminary expenses, buy back of shares, etc The balance can also be used to provide for the premium that is payable on the redemption of debentures or of preference shares of the company