Which of the following is not a purpose for which share premium may be utilized?
Answer Details
The purpose of share premium is to raise capital for a company. It is the excess amount received by a company when it issues shares at a premium (i.e., at a price higher than its face value). This premium can be used for various purposes, such as issuing fully paid bonus shares, writing off preliminary expenses, and providing for redeemable preference shares. However, it cannot be used to settle salesman commission. Therefore, "settling salesman commission" is the option that is not a purpose for which share premium may be utilized.