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Status:
Point in time view as at 06/04/2015.
Changes to legislation:
Companies Act 2006, Cross Heading: The share premium account is up to date with all changes known to be in force on or before 09 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.

Changes to Legislation
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The share premium accountU.K.
610Application of share premiumsU.K.
(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.
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