Section 29 : Power to issue shares at premium
1) Any company fulfilling the following conditions may, with the prior approval of the Office, issue shares at a premium:
 

a) The company has been making profits and distributing dividends for three consecutive years,

b) The company’s net worth exceeds its total liabilities,

c) The company’s general meeting has decided to issue shares at a premium.

2) Where the shares are sold at a premium pursuant to Subsection (1), a sum in excess of the face value, out of the proceeds thereof, shall be deposited in a premium account to be opened to that effect.

3) The company may use the moneys in the account as referred to in Sub-section (2) in the following acts:

a) Paying up unissued share capital to be issued to the shareholders as fully paid bonus shares,

b) Providing for the premium payable on redemption of any redeemable preference shares,

c) Writing off the preliminary expenses made by the company,

d) Bearing or reimbursing the expenses of, or the commission paid or discount allowed on, any issue of shares of the company.

e) In making a request for approval of the Office to issue shares at a premium pursuant to Sub-section (1), the audited financial statements for three years shall be provided to the Office.