On application Rs. 3 per shareOn allotmentRs. 4 per shareOn 1st and final callBalance Applications for 95,000 shares were received and shares were allotted to all the applicants. Sonam to whom…
SOLUTION These shares can be reissued at a maximum discount of Rs. 7 per share (i.e., Rs. 700).
SOLUTION The utilisation of securities premium reserve by a company for buy-back of its own shares would maximise the return to shareholders.
SOLUTION No. It is not a part of Company’s Share Capital and no dividend is payable on the amount of Calls in advance.
SOLUTION The company cannot proceed for allotment of shares as the minimum subscription is not received which should be 90% of the shares offered for subscription (i.e., 9,00,000).
SOLUTION (i) To make pro-rata allotment to the remaining applicants; or (ii) Accepting some applications in full and alloting the remaining on pro-rata basis.
SOLUTION Over- Subscription of ShareUnder-Subscription of SharesIn this case, number of shares applied for by public is more than the number of shares offered by the company.In this case, number…
SOLUTION ‘Securities Premium Reserve’ cannot be used as working capital. It can be used only for those purposes which are specified under section 52 of Companies Act, 2013.
SOLUTION Amount of securities premium reserve cannot be distributed as dividend. It can only be used for the purposes listed under Section 52 of the Companies Act.