LA
Amendment
of heading before section 49.
Addition of
489.
5.
The heading "Isstte of Redeemuble Preference Shares" and Shares at Discount" before section 49 of the principal Ordin." ance is repealed and the following beading substituted therefor— "Issue of Shares at Premium, Redeemable Preference Shares, and Shares at Discount.".
6.
The principal Ordinance is amended by adding, after the new section heading "Issue of Shares at Premium, Redeemable Preference Shures, and Shares at Discount." and before section 49, the follow- ing new section-- "Application
received on issure of abares.
18 c. 38.
48B. (1) Where a company issues shares at a of premiums premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to an account, to be called "the share premium account", and the provisions of this Ordinance relating to the reduction of the share capital of a company shall, except as provided in this section, apply as if the share premium account were paid-up share capital of the company,
1. $6.
(2) Where shares are issued for a consideration other than cash and the value of the consideration, as estimated by the directors having regard to all relevant information. is in excess of the amount credited as paid up on the shares so issued, the shares shall be deemed to have been issued at a premium equal to the difference between the value so estimated and the amount credited as paid up on the shares so issued.
(3) The share premium account may, notwith- standing anything in subsection (I), be applied by the company~-~~
(a) in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares;
(b) in writing off→→
(i) the preliminary expenses of the com- pany: or
(i) the expenses of, or the commission paid or discount allowed on, any issue of shares of the company; or
(c) in providing for the premium payable on redemption of any redeemable preference shares of the company.
Elinch Schedule.
Tenth Schedule.
(4) For the purposes of subsection (3), the ex- penses of the issue of any shares shall be deemed to include such portion of the nd valorem fee paid under the Eighth Schedule by the company upon its registration or upon any increase thereafter in its nominal share capital as is attributable to the nominal amount of the shares issued.
(5) Where a company has before the commence- ment of the Companies (Amendment) (No. 4) Ordin- ance 1974 issued any shares at a premium, this section shall apply as if the shares had been issued after the commencement of that Ordinance:
Provided that any part of the premiums which has been so applied that it does not at the commence- ment of that Ordinance form an identifiable part of the company's reserves within the meaning of the Tenth Schedule shall be disregarded in determining the sum to be included in the share premium account.".
7. Section 49 of the principal Ordinance is repealed and the Repeal and replacement following new section substituted therefor-
af section 49.
"Power to isauc redeemable preference shares.
1H C. 38,
1. 58.
49. (1) Subject to the provisions of this section, a company limited by shares may, if so authorized by its articles, issue preference shares which are, or at the option of the company are to be liable, to be redeemed:
Provided that-
(a) no such shares shall be redeemed except out of profits of the company which would otherwise be available for dividend or out of the proceeds of a fresh issue of shares made for the purposes of the redemption;
(b) no such shares shall be redeemed unless they
are fully paid;
(c) the premium, if any, payable on redemption, must have been provided for out of the profits of the company or out of the com- pany's share premium account before the shares are redeemed;
(d) where any such shares are redeemed other- wise than out of the proceeds of a fresh
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