Question
Given below are two statements, one labelled as
Assertion (A) and the other labelled as Reason (R). You are to examine these two statements carefully and select the answers using the code given below: Assertion (A): ‘Securities Premium Reserve’ can be distributed as dividend. Reason (R):Amount of securities premium reserve cannot be distributed as dividend. It can only be used for the purposes listed under section 52 of the Companies Act.Solution
The assertion that 'Securities Premium Reserve' can be distributed as dividend is false. According to section 52 of the Companies Act, the amount in the securities premium reserve cannot be distributed as dividends. It can only be used for specific purposes such as issuing fully paid bonus shares, writing off preliminary expenses, and buy-back of shares, among others. Therefore, the reason correctly explains that the securities premium reserve cannot be used for dividend distribution and can only be used for the specified purposes under section 52.
What is the index of the French Stock Market ?
Who received the Nobel Prize for Physiology or Medicine for the year 2020?
. Which of these sports is Sarita Singh related to?
The town of Sanchi, famous for the Sanchi stupa is located in?Â
What is the duration for which Mahila Samman Savings Certificate can be held?
When is ‘International Translation Day’ celebrated?
How many new schemes aimed at boosting farmers' incomes and improving agriculture did the Union Cabinet recently approve?
Which company commissioned the country's second largest rooftop solar power plant at Pata in Uttar Pradesh?
Which virus strain has raised concerns for potentially being transmitted from pigs to humans?
The Lohani caves, associated with both Hindu and Islamic historical periods, are located in which Indian state?