Companies Act (Cap. 386), article 114

114. (1) Where a company issues shares at a premium whether for cash or otherwise, a sum equal to the aggregate amount or v alue of the premiums on those shares shall be immediately paid in fu ll and transferred to an account, to be called "the share premium account", and the provisions of this Act relating to the reduct ion of the issued share capital of a company shall, except as provided in this article, apply as if the share premium account were paid u p share capital of the company. (2) The share premium account may, notwithstanding anything contained in the foregoing sub-a rticle, be applied by the compa ny - (a) in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares; or (b) in writing off the preliminar y expenses of the company or the expenses of or the commission paid or discount allowed on, any issue of s hares or debentures of the company; or (c) in providing for the premium payable on redemption of any redeemable preference shares or of any debentures of the company. Group reconstruction relief. Added by: XV . 2007.8.