Section 78 of the Companies Act, 2013
Section 78 of the Companies Act, 2013 does not exist.
The Companies Act, 2013 contains 470 sections, but the section numbering was revised compared to the earlier Companies Act, 1956. In the 1956 Act, Section 78 dealt with the application of the securities premium account.
In the Companies Act, 2013, the relevant provision has been moved and is now covered under:
🔹 Section 52 – Application of Securities Premium (Companies Act, 2013)
Key points from Section 52:
The securities premium account can be used only for specific purposes, such as:
Issuing fully paid bonus shares;
Writing off preliminary expenses;
Writing off expenses/commission/discount on issue of securities;
Providing for the premium payable on redemption of preference shares or debentures;
Buy-back of its own shares under Section 68.
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