Share premium received by issuing shares can be used for:

by

Payment of dividends
Issue of bonus shares
Remuneration to management
Any other business Purpose

The correct answer is D. Any other business purpose.

Share premium is the excess of the issue price of a share over its par value. It is a capital reserve that can be used for any purpose that is beneficial to the company, such as:

  • Paying off debt
  • Investing in new projects
  • Repurchasing shares
  • Increasing the company’s cash reserves

Share premium cannot be used to pay dividends or to remunerate management.

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