Power to issue shares at premium

Power to issue shares at premium

(1) Any company fulfilling the following conditions may, with the prior approval of the Office, issue shares at a premium:

• (a) The company has been making profits and distributing dividends for three consecutive years,

• (b) The company’s net worth exceeds its total liabilities,

• (c) The company’s general meeting has decided to issue shares at a premium.

(2) Where the shares are sold at a premium pursuant to Subsection (1), a sum in excess of the face value, out of the proceeds thereof, shall be deposited in a premium account to be opened to that effect.

(3) The company may use the money in the account as referred to in Sub-section (2) in the following acts:

• (a) Paying up unissued share capital to be issued to the shareholders as fully paid bonus shares,

• (b) Providing for the premium payable on redemption of any redeemable preference shares,

• (c) Writing off the preliminary expenses made by the company,

• (d) Bearing or reimbursing the expenses of, or the commission paid or discount allowed on, any issue of shares of the company.

• (e) In making a request for approval of the Office to issue shares at a premium pursuant to Sub-section (1), the audited financial statements for three years shall be provided to the Office.