Section 52 of the Companies Act, 2013 restricts the use of Securities Premium to specified purposes such as issuing bonus shares, writing off preliminary expenses and paying premium on redemption. It cannot be used for paying dividend to shareholders.
Securities premium cannot be used:
CUET UG 2023 — Accountancy Company Accounts
2023mcqeasy
Securities premium cannot be used:
Official previous-year question
Held on 20 Jun 2023 · Verified 13 Jul 2026.
Options
- A
for issuing fully paid Bonus shares
- B
to write-off preliminary expenses of the company
- C
to pay premium on redemption of shares or debentures of company
- D
to pay dividend to the shareholder of company
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