Bonus share

This query is : Resolved

Report Abuse Follow Query Ask a Query

Ramya

Ramya (Querist)
Follow

18 August 2012 What is the procedure to issue bonus share?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
Follow

18 August 2012
STEPS:

1. VERIFY WHETHER THE COMPANY IS ELIGIBLE TO ISSUE BONUS SHARES.

2. VERIFY WHETHER THERE IS ADEQUATE UN-ISSUED EQUITY CAPITAL IN THE AUTHORIZED CAPITAL

3. DETERMINE THE TERMS AND CONDITIONS OF BONUS ISSUE

4. CONVENE BOARD MEETING - PASS BOARD RESOLUTION

5. GIVE NOTICE OF EXTRAORDINARY GENERAL MEETING

6. PASS ORDINARY RESOLUTION IN THE EXTRAORDINARY GENERAL MEETING

7. CONVENE BOARD MEETING --MAKE ALLOTMENT OF SHARES

8. FILE RETURN OF ALLOTMENT

9. ALL SHARE CERTIFICATES SHALL BE DELIVERED TO THE SHAREHOLDERS WITHIN 3 MONTHS FROM THE DATE OF ALLOTMENT OF BONUS SHARES.