Mihir Manohar (CA Final - Article Assistant) (474 Points)
03 June 2013Companies act states that only equity shares can be issued as Bonus Shares, but recently i read in the Economic times that Zee entertainment has issued Reedemable Prefernce Shares as Bonus shares.What of this conflict???
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 05 June 2013
Issue of reedemable preference shares as bonus shares amounts to indirect payment of dividend and evasion of dividend tax.
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