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

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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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