Section 29 : Power to issue shares at premium

(1) A public company which may make public issue of securities in accordance with the prevailing law relating to securities may issue shares of premium value in accordance with the conditions and conditions specified in the prevailing law relating to securities. However, private companies or other public companies that have not made arrangements for the public disposal of securities in accordance with the prevailing law on securities can issue shares of premium value with the approval of the General Assembly in cases where the assets exceed the liabilities.

(2) In the event of the sale of shares at the premium price pursuant to sub-section (1), an amount equal to the value calculated out of the amount received therefrom shall be credited to the premium account.

(3) The amount in the account pursuant to sub-section (2) may be used by the company for the following purposes: –

(a) to allocate and issue fully paid up bonus shares to the shareholders out of the unissued share capital,

(b) to arrange the amount in respect of the premium to be paid on the return of any preference shares to be returned,

(c) to deduct the initial expenses of the company,

(d) to pay or recover the amount of commission or discount paid or incurred in connection with the issue of shares of the company.

(4) When seeking the approval of the Office to issue shares of premium value in accordance with sub-section (1), the three-year audited financial statement shall be provided to the Office.