Subject: Cooperate law

Q3. In board of directors meeting, called to arrange for the financing of a new project. One of the directors proposed to use all the reserves available for this purpose. These reserves include share premium account balance of $1,000,000/-. With reference to relevant sections of Company Act 2017, relating to share premium account, discuss in detail how this reserve is generated, what are its legal uses and the penalties imposed for the violation of law in this regard