Bonus issue & stock split

SUMIT KUMAR KESHAN (CA FINALIST) (31 Points)

17 February 2012  

 

                                                                                         "VERY URGENT"
 
Hi to all
 
my query is 
can we do stock/share split as well as declare bonus shares as in the same accounting year.
can the resolution be passed in a single/same meeting. what will be the explanatory statement for the same.
 
our's is a private limited company
in our case the authorised capital of the company is Rs. 5000000/- divided into 500000 shares of Rs. 10/- each and the paid-up capital is Rs. 2000000/- divided into 200000 shares of Rs. 10/- each.
The management of the company wants to frist split the existing shares of the face value Rs. 10 per share into Rs. 1/- per share and then declare a bonus 1:1 on the existing shares.
 
so i want to know is it valid to do the same at the same time and if it is so what is the procedure for the same.
what are the steps to be followed.