{
  "url": "https://openlegislation.uk/companies-act-2006/section-610",
  "json_url": "https://openlegislation.uk/companies-act-2006/section-610.json",
  "legislation": "ukpga/2006/46",
  "legislation_title": "Companies Act 2006",
  "legislation_url": "https://openlegislation.uk/companies-act-2006",
  "path": "section/610",
  "kind": "section",
  "number": "610",
  "heading": "Application of share premiums",
  "text": "(1) If 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 must be transferred to an account called “the share premium account”.\n(2) Where, on issuing shares, a company has transferred a sum to the share premium account, it may use that sum to write off—\n(a) the expenses of the issue of those shares;\n(b) any commission paid on the issue of those shares.\n(3) The company may use the share premium account to pay up new shares to be allotted to members as fully paid bonus shares.\n(4) Subject to subsections (2) and (3), the provisions of the Companies Acts relating to the reduction of a company's share capital apply as if the share premium account were part of its paid up share capital.\n(5) This section has effect subject to—\nsection 611 (group reconstruction relief);\nsection 612 (merger relief);\nsection 614 (power to make further provisions by regulations).\n(6) In this Chapter “the issuing company” means the company issuing shares as mentioned in subsection (1) above.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "I",
      "label": "I1",
      "text": "S. 610 wholly in force at 1.10.2009; s. 610 not in force at Royal Assent see s. 1300; s. 610(2)-(4) in force for specified purposes at 1.10.2008 by S.I. 2008/1886, art. 2 (with arts 6, 7); s. 610 in force at 1.10.2009 in so far as not already in force by S.I. 2008/2860, art. 3(k) (with arts. 5, 7, 8, Sch. 2) (as amended by S.I. 2009/1802, art. 18)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2006/46/section/610",
    "retrieved_at": "2026-10-29T09:13:40.060156+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}