Section 48: Stated capital and share premium account

48. Stated capital and share premium account (1) A company shall maintain a stated capital account for each class of shares it issues in which it shall enter the stated capital in relation to that class of shares. (2) A company shall not reduce its stated capital except as provided under section 62. (3) The provisions of this Act relating to stated capital shall not apply to a company which is an investment company including an authorised mutual fund. (4) Except in the case of a company holding a Global Business Licence or an Authorised Company, the stated capital of the company shall be expressed in Mauritius currency unless written approval to express the stated capital in another currency is obtained from the Registrar in the same manner as under section 213. (5) Where shares having a par value are issued 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 stated capital of the company and relating to the reduction of share capital of the company shall apply. (6) Where shares having a par value are issued for a consideration other than cash and the value of that consideration is more than the par value of such shares, the difference between the par value of the shares and the value of the shares so acquired shall be transferred to the share premium account. [Issue 10] C35 – 44 Revised Laws of Mauritius (7) In the case of shares having a par value, the share premium account may, notwithstanding anything contained in subsection (5), be applied by the company to paying up shares of the company to be issued to shareholders of the company as fully paid shares. (8) The stated capital account, including in the case of shares having a par value, the share premium account, notwithstanding anything contained in subsection (5) may, provided the directors are satisfied that the company will immediately after the application satisfy the solvency test, be applied by the company in writing off— (a) the preliminary expenses of the company; or (b) the expenses of, or the commission paid on, the creation or issue of any such shares. [S. 48 amended by s. 4 (e) of Act 20 of 2002 w.e.f. 1 December 2001; s. 13 (c) of Act 11 of 2018 w.e.f. 1 October 2018.]