Question

Describe the purpose for which a company can use Securities Premium.

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Answer 1

Answer:

as per section 52 of the Companies Act 2013 security premium is used for loss on issue of share issue of shares at discount and and many other uses of security given in the section 52 of Companies Act 2013

Answer 2

Securities Premium Account

To issue fully paid-up bonus shares to its existing shareholders. ...

Securities Premium Account can be used for writing off any preliminary expenses of the company.

To write off expenses of issue of shares and debentures, such as commission paid or discount given on the issue of shares.