610 Application of share premiums
Companies Act 2006 | Legislation

Chapter 7
Share Premiums

The share premium account

610  Application of share premiums

(1)     If 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 must be transferred to an account called “the share premium account”.

(2)     Where, on issuing shares, a company has transferred a sum to the share premium account, it may use that sum to write off—

(a)     the expenses of the issue of those shares;

(b)     any commission paid on the issue of those shares.

(3)     The company may use the share premium account

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