I have a situation where shareholders have subscribed at different times, for differing amounts, as well as for different classes of shares. Not enough reserves available for the level of distribution that is wanted and so they are looking to tap into the share premium account.
The proposal is that all shareholders get the same amount per share, regardless of what they paid.
Note: A clearance will be sought.
If a company decides to repay capital to shareholders, does it have to repay to those shareholders whose share subscription created the share premium account or can it pay the money to holders who subscribed for their shares at par only?