. Premium on issue of shares can be used for
A: Distributing profits
B: Issue of bonus shares
C: Paying the amount to directors
D: Transfer to dividend equalization fund
Best Answer
Explanation:
The amount that is realised from premium on issue of shares cannot be used to
distribute dividends or for making payment of any expenses or fees.
Neither the amount can be used to transfer to any other fund.
It can be thus used to issue bonus shares only.
Final Answer:
Hence, the correct answer is option B: issue fo bonus shares.
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