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Non issue of bonus shares after approval in agm

MUTHUSELVAM (Manager) (45 Points)

13 May 2016

Hello Members, very good evening to all. Please let me know the consequences of non-issue of bonus shares after the approval accorded by the members of a company in Annual General Meeting of the company.. Regards..

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4 Replies

Mandar (Associate) (561 Points)
Replied 13 May 2016

With reference to Rule 14 of Companies (Share Capital & Debt) Rules 2014,

The Companies Officials might be tried under Section 448 of CA 2013 for False Statement.

sriram (CA Final) (203 Points)
Replied 13 May 2016

Hello Sir,

the same could be ratified by conducting an egm and unianmous approval for the same could be asked for. the reasons for non compliance of the issue should be added in the resolution.

regards

sriram

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 14 May 2016

Pl note that Supreme Court in its judgement dated 21/4/1970 in the case of Shri Gopal Paper Mills Co. Ltd v/s CIT, Central Calcutta has held that bonus shares become property of the shareholders on the date of declaration in general meeting and not on the date of allotment by the Board of Directors.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 16 May 2016

Originally posted by : P C Agrawal
	Pl note that Supreme Court in its judgement dated 21/4/1970 in the case of Shri Gopal Paper Mills Co. Ltd v/s CIT, Central Calcutta has held that bonus shares become property of the shareholders on the date of declaration in general meeting and not on the date of allotment by the Board of Directors.

As per rule 14 of the Companies (Share Capital and Debentures) Rules, 2014 the Company which has once announced the decision of its Board Recommendation of Bonus issue, shall not subsequently withdraw the same.