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Explain: 

(i) The purpose of a share premium account 

(ii) Whether Fin can reclaim his premium payment from Irk plc 

Distributable profits may be defined as ___________ profits less ___________ losses. 

A private company does not need to apply to the court to reduce its share capital if it supports its ___________ with a  ___________ . 

 Where application is made to the court for confirmation of a reduction in capital, the court may require that creditors should be invited by advertisement to state their objections. In which of the following ways can the need to advertise be avoided? 

 Select all that apply. 

A

 Paying off all creditors before application to the court 

B

 Producing a document signed by the directors stating the company's ability to pay its debts 

C

 Producing a guarantee from the company's bank that its existing debts will be paid in full 

D

 Renouncement by existing shareholders of their limited liability in relation to existing debts