Securities premium Reserve can be utilised ___A. to return excess money received on applicationB. to write off preliminary expensesC. to issue partly paid bonus sharesD. for premium paid on Redemption of Debentures or preference sharesE. for buy back of sharesChoose the correct answer from the options given below:
- AA, B, C only
- BB, C, E only
- CC, D, E only
- DB, D, E only
Solution & Step-by-step Explanation
As per Section 52(2) of the Companies Act, 2013, Securities Premium Reserve can be utilized for:Writing off preliminary expenses (B).Writing off expenses/discount on issue of shares/debentures.Premium payable on redemption of preference shares or debentures (D).Issuing fully paid bonus shares (not partly paid).Buy-back of shares (E).Thus, B, D, E only are correct.