C2C1Part 17A company's share capital
Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2
Chapter 7Share premiums
The share premium account
I1610Application of share premiums
1
If a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those shares must be transferred to an account called “the share premium account”.
2
Where, on issuing shares, a company has transferred a sum to the share premium account, it may use that sum to write off—
a
the expenses of the issue of those shares;
b
any commission paid on the issue of those shares.
3
The company may use the share premium account to pay up new shares to be allotted to members as fully paid bonus shares.
4
Subject to subsections (2) and (3), the provisions of the Companies Acts relating to the reduction of a company's share capital apply as if the share premium account were part of its paid up share capital.
5
This section has effect subject to—
section 611 (group reconstruction relief);
section 612 (merger relief);
section 614 (power to make further provisions by regulations).
6
In this Chapter “the issuing company” means the company issuing shares as mentioned in subsection (1) above.
Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))