Singapore legislation
Clause 60
Clause 60
Issue of shares at premium
(1)
Where a company issues shares for which a premium is received by the company whether in cash or in the form of other valuable consideration a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to an account called the “share premium account”, and the provisions of this Act relating to the reduction of the share capital of a company shall subject to this section apply as if the share premium account were paid up share capital of the company.[U.K.s. 56.][Aust. s. 60.]
(2)
The share premium account may be applied —
in paying up unissued shares to be issued to members of the company as fully paid bonus shares;
in paying up in whole or in part the balance unpaid on shares previously issued to members of the company;
in the payment of dividends if such dividends are satisfied by the issue of shares to members of the company;
in the case of a company which carries on insurance business in Singapore by appropriation or transfer to any statutory fund established and maintained pursuant to any law of Singapore relating to insurance;
in writing off —
the preliminary expenses of the company; or
the expenses of, or the commission or brokerage paid or discount allowed on, any duty fee or tax payable on or in connection with, any issue of shares of the company; or
in providing for the premium payable on redemption of redeemable preference shares.