Comment on the following: Securities premium can be utilized for reducing share capital.
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · June 2019
Comment on the following: Securities premium can be utilized for reducing share capital.
Answer & Explanation:
Securities premium can be utilized for reducing share capital. Utilization of securities premium and general reserve for reduction of share capital is permissible if: There is no diminution of liabilities, or There is no repayment of paid-up capital, or There is no reduction of issued, subscribed or paid-up share capital. Vide Alembic Ltd. Re (2008) 144 Comp cases 105; (2009) 89 SCL 19 (Guj.)
Topics: Company Law
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