27 November 2010
One of my client is having following share capital: Authorised capital: 10,00,000 equity shares of Rs 10 each = RS. 1 crore and 15,00,000 Preference share of Rs. 10 each = Rs. 1.5 crore total authorised capital is 2.5 crore. Paid up captal as on 31.3.2010 is 10,00,000 eq. shares of Rs 10 each = Rs. 1 crore.
They wants to issue bonus share 1:1 i.e.10,00,000 eq. share Rs. 1 crore.
Whether authorised capital is required to increased ? or Preference share as redem in 2009 and no intention to issue in future the authorised capital can be adjusted and no more to increased.
29 November 2010
Dear Mr. Bimal You can reclassified your prefrence authorised capital into equity authorised capital by filing Form 5, your total equity authorised capital would be 2.5 Crores in such case u need not further increase in authorised capital for making a bonus issue
CAclubindia
