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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 56

56.(1) Where a company issues shares at a premium, whether for cash or
otherwise, a sum equal to the aggregate amount or value of the premiums 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 as provided in this section,
apply as if the share premium account were paid-up share capital of
the company.

(2) The share premium account may, notwithstanding anything in sub-section
(1), be applied by the company in paying up unissued shares of the company to
be issued to members of the company as fully paid bonus shares, in writing off

(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;

(3) Where a company has before the commencement of this Act issued any shares
at a premium, this section shall apply as if the shares had been issued after
the commencement of this Act, so, however, that any part of the premiums which
has been so applied that it does not at the commencement of this Act form an
identifiable part of the company's reserves within the meaning of the Sixth
Schedule shall be disregarded in determining the sum to be included in
the share premium account.

© 1960 Crown Copyright

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