Economics · Corporate Accounting
Which of the following represents a legally valid utilization of the Securities Premium Account balance strictly as per the limitations set by Section 52(2) of the Companies Act, 2013?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1To pay dividends to equity shareholders to maintain stock price stability.
- 2For writing off the preliminary expenses of the company or providing for the premium payable on redemption of preference shares.✓
- 3To offset the operational losses incurred by a project during its first year.
- 4To purchase raw materials from international suppliers to hedge against currency fluctuations.
Correct answer
For writing off the preliminary expenses of the company or providing for the premium payable on redemption of preference shares.
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