Question:
A company issues its shares at a premium under which section of Indian Companies Act, 2013?
A company issues its shares at a premium under which section of Indian Companies Act, 2013?
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Section 52 of Companies Act, 2013 governs Securities Premium Account.
Updated On: Sep 13, 2025
- 78
- 52
- 53
- None of these
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The Correct Option is B
Solution and Explanation
Step 1: Section reference.
As per the Indian Companies Act, 2013, issue of shares at a premium and its treatment is governed under Section 52.
Step 2: Use of securities premium.
Securities Premium Account can be used for: - Issuing fully paid bonus shares, - Writing off preliminary expenses, - Writing off premium on redemption of debentures, - Providing for buy-back of shares, etc.
Step 3: Conclude.
Therefore, issue of shares at premium is dealt under Section 52.
Final Answer: \[ \boxed{\text{Section 52}} \]
As per the Indian Companies Act, 2013, issue of shares at a premium and its treatment is governed under Section 52.
Step 2: Use of securities premium.
Securities Premium Account can be used for: - Issuing fully paid bonus shares, - Writing off preliminary expenses, - Writing off premium on redemption of debentures, - Providing for buy-back of shares, etc.
Step 3: Conclude.
Therefore, issue of shares at premium is dealt under Section 52.
Final Answer: \[ \boxed{\text{Section 52}} \]
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