| Commentary

286.1 General

| Commentary

286 Share premiums

286.1 General

In a company reorganisation which involves a transferee company acquiring the whole or part of the undertaking, property and liabilities of a transferor company, it will often be the case that the net value of the assets transferred at the time of the transaction exceeds the nominal value of the shares which the transferee company issues in exchange. If so, the transferee company must generally credit an amount equal to the excess to its share premium account and the application of that amount must be restricted accordingly1. There are however two exceptions to

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