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MikeLittle.
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seanog91
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Hi,
I was just wondering is there any particular order that the premium share account has to be used to pay off debts such as debentures and expenses etc?
Thanks
MikeLittle
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No, there is no sequence in which the share premium (not the premium share!) account should be used. In fact, writing off the preliminary and formation expenses would logically be the first to be debited to the share premium account but after that it’s a question of what happens next.
It could be providing for the premium payable on the redemption of shares and / or debentures. It could be financing the issue of fully paid bonus shares to existing members. It could even be writing off the commissions paid on, expenses of or discounts allowed on any issue of shares and / or debentures.
No, no particular sequence
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