Mobile View
Main Search Advanced Search Disclaimer
Citedby 185 docs - [View All]
Nestle India Limited vs - on 30 September, 2008
Hillcrest Reality Sdn.Bhd. vs Mr. Ram Parshotam Mittal & Ors. on 18 August, 2009
In Re: Hyderabad Industries ... vs Unknown on 27 April, 2004
In Re: Global Trust Bank Ltd. vs Unknown on 3 September, 2004
Bisakha Sales Pvt Ltd, Kolkata vs Assessee on 19 September, 2014

[Complete Act]
User Queries
Central Government Act
Section 78 in The Companies Act, 1956
78. Application of premiums received on issue of shares.
(1) Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to an account, to be called" the share premium account"; and the provisions of this Act relating to the reduction of the share capital of a company shall, except as provided in this section, apply as if the share premium account were paid- up share capital of the company.
(2) The share premium account may, notwithstanding anything in sub- section (1), be applied by the company-
(a) in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares;
(b) in writing off the preliminary expenses of the company;
(c) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company; or
(d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company.
(3) Where a company has, before the commencement of this Act, issued any shares at a premium, this section shall apply as if the shares had been issued after the commencement of this Act: Provided that any part of the premiums which has been so applied that it does not at the commencement of this Act form an identifiable part of the company' s reserves within the meaning of Schedule Vl, shall be disregarded in determining the sum to be included in the share premium account.