Question

Under the Companies Act, there are specific regulations governing the utilization of the amount received as premium on securities. These funds, often recorded in the Securities Premium Account, can be used for several defined purposes. However, one of the following options is not an allowable use of these funds. As per the relevant section of the Companies Act, which of the following is not a permissible utilization of the amount received as premium on securities?

A Issuing fully paid bonus shares to the members
B Writing off preliminary expenses
C Purchase of fixed assets
D Buy back of its own shares
E None of the above
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