610 Application of share premiums
610 Application of share premiums
Companies Act 2006 | Legislation

(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 to pay up new shares to be allotted to members as fully paid bonus shares.