In view of the provisions of the Companies Act, 2013 relating to 'securities premium', state whether the amount lying in securities premium account of a company can be used: For payment of dividend declared by the compan

(ii) For payment of dividend declared by the company at its general meeting. Securities premium Account since not covered by section 123(1) cannot be utilized for the purpose of declaring dividend Reference: As per Section 123(1) of Companies Act 2013 provides that no dividend shall be declared or paid by a company for any financial year except- (a) out of the profits of the company for that year arrived at after providing for depreciation in accordance with the provisions of sub-section (2), or out of the profits of the company for any previous financial year or years arrived at after providing for depreciation in accordance with the provisions of that sub-section and remaining undistributed, or out of both; or (b) out of money provided by the Central Government or a State Government for the payment of dividend by the company in pursuance of a guarantee given by that Government.