What is Payment of dividend in proportion to amount paid up What is Application of premiums received on issue of shares. Section 51 and 52 of Indian Companies Act 2013

Payment of dividend in proportion to amount paid up and Application of premiums received on issue of shares are defined under Section 51 and 52 of Indian Companies Act 2013. Provisions under these sections are:

Section 51 of Indian Companies Act 2013 "Payment of dividend in proportion to amount paid up"

A company may, if so authorised by its articles, pay dividends in proportion to the amount paid-up on each share.


 

Section 52 of Indian Companies Act 2013 "Application of premiums received on issue of shares"

(1) Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a securities premium account and the provisions of this Act relating to reduction of share capital of a company shall, except as provided in this section, apply as if the securities premium account were the paid-up share capital of the company.

(2) Notwithstanding anything contained in sub-section (1), the securities premium account may be applied by the company-

(a) towards the issue of un-issued shares of the company to the members of the company as fully paid bonus shares;

(b) in writing off the preliminary expenses of the company;

(c) in writing off the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company;

(d) in providing for the premium payable on the redemption of any redeemable preference shares or of any debentures of the company; or

(e) for the purchase of its own shares or other securities under section 68.

(3) The securities premium account may, notwithstanding anything contained in sub-sections (1) and (2), be applied by such class of companies, as may be prescribed and whose financial statement comply with the accounting standards prescribed for such class of companies under section 133,-

(a) in paying up un-issued equity shares of the company to be issued to members of the company as fully paid bonus shares; or

(b) in writing off the expenses of or the commission paid or discount allowed on any issue of equity shares of the company; or

(c) for the purchase of its own shares or other securities under section 68.

 

What is Global depository receipt What is Offer or invitation for subscription of securities on private placement Section 41 and 42 of Indian Companies Act 2013

SHARE CAPITAL AND DEBENTURES

What are the kinds of share capital Section 43 of Indian Companies Act 2013

What is the Nature of shares or debentures What is Numbering of shares What is  Certificate of shares Section 44, 45 and 46 of Indian Companies Act 2013

What is Voting rights What is variation of shareholders rights Section 47 and 48 of Indian Companies Act 2013

Calls on shares of same class to be made on uniform basis. Company to accept unpaid share capital, although not called up. Section 49 and 50 of Indian Companies Act 2013

What is Payment of dividend in proportion to amount paid up What is Application of premiums received on issue of shares. Section 51 and 52 of Indian Companies Act 2013

What is Prohibition on issue of shares at discount What is the procedure for Issue of sweat equity shares Section 53 and 54 of Indian Companies Act 2013

What is the rule for Issue and redemption of preference shares Section 55 of Indian Companies Act 2013

What are the conditions for Transfer and transmission of securities Section 56 of Indian Companies Act 2013

What is the Punishment for personation of shareholder What is the Refusal of registration and appeal against refusal Section 57 and 58 of Indian Companies Act 2013

What is Rectification of register of members and punishment for violation What is Publication of authorised, subscribed and paid-up capital Section 59 and 60 of Indian Companies Act 2013

 

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap