Resolution for bonus shares of unlisted public companies (Corporate Law)

This query is : Resolved

Author : Anonymous

( Author )
22 May 2012

Dear All please help

What type of resolution is required to be passed whether SR or OR in the following case?:

The company is an Unlisted Public Company and wants to issue bonus shares to its existing shareholders.

Please reply ASAP

mitesh

( Expert )
23 May 2012

As per regulations 96 & 97 in Table A of Schedule 1 of the Companies Act, 1956 the proposal to issue bonus shares has to be approved by the shareholders of the company in general meeting upon recommendation by the Board of Directors of the company However if these regulations have been excluded from the Articles of Association of the company then it shall be sufficient if the Board approves the bonus issue.