Bonus issue

This query is : Resolved

Sneha (Querist)
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27 October 2010 A pvt co. ABC ltd. has only 2 shareholders

XYZ ltd. holding 9999 shares
Mr. X (nominee of XYZ Ltd.) holding 1 share

now ABC Ltd. is issuing bonus shares 9lac shares @ 90 shares for every one share

My query is whether the nominee Mr. X will be allotted any bonus shares or whether the entire 9 lac shares be allotted to XYZ Ltd.?

please reply

CS Nikita Sheth

CS Nikita Sheth (Expert)
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27 October 2010 Hi Sneha,
Wil; u explain me what u mean by 9lac shares @ 90 shares for every one share

Sneha

Sneha (Querist)
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27 October 2010 Oh I am sorry i did not phrase it well. ABC P. Ltd. is issuing 9 lac bonus shares i.e., the ratio being 90 shares for every one share held by shareholders.

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CS Nikita Sheth

CS Nikita Sheth (Expert)
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28 October 2010 As Mr X nominnee, is holding one share and the ration for bonus issue is 90 Bonus shares for every one share held

so, Mr. X as a nominnee will be alltted 90shars as bonus shares and his holding will be 91 shares