Ch 6 · Company Accounts — Issue of Shares

5 concept points · 4 formulas · 4 exam-critical points.

⭐ Important points (exam-critical)

• ⭐Securities Premium uses (Sec 52): bonus issue, write-off preliminary expenses, premium on redemption, buy-back.
• ⭐If pro-rata allotment, excess application money adjusts towards allotment then calls.
• ⭐Re-issue at discount: max discount = forfeited amount per share.
• ⭐Companies Act 2013 prohibits issue at discount (except sweat equity).