58.
| (1) Where a company issues shares at a premium, whether for cash, or otherwise, a sum equal to the aggregate or value of the premium on those shares shall be transferred to an account, to be called the " Share Premium Account", and the provisions of this Act relating to the reduction of the share capital of a company shall, except in this section, apply as if the share premium account were paid-up share capital of the company. |
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| (2) The Share Premium Account may, notwithstanding anything in subsection (1), be applied by the company in paying up un issued shares, of the company to be issued to members of the company as fully-paid bonus shares, in writing of
| | (a) the preliminary expenses of the company; or | | |
| | (b) the expenses of, or the commission paid or discount allowed on, any issue of shares or debentures of the company, | | |
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| (3) Where a company has before the appointed date issued any shares at a premium, the provisions of this section shall apply as if the shares had been issued on or after that date: |
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Sri Lanka Consolidated Acts