(1)Where a company issues [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] at a premium, whether for cash or otherwise, a sum equal to the aggregate amount or value of the premiums on those [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] shall be transferred to an account, to be called "the [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] premium account"; and the provisions of this Act relating to the reduction of the [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] capital of a company shall, except as provided in this section, apply as if the [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] premium account were paid-up [securities ] [Substituted by Act 21 of 1999, Section 5, for " share" (w.r.e.f. 31.10.1998). ] capital of the company.
