Bonus isuue
This query is : Resolved
16 March 2010
Can a Company issue preference shares as bonus shares to the equity shareholders of the company?
16 March 2010
No
16 March 2010
Thanky you sir, can i also know the reason for it...
16 March 2010
Bonus Issue is only the capitalisation of the profits which otherwise are distributable to the Equity Shareholders. In any case, the issue of bonus can not put that shareholder in a class having a priority on his or her existing shares as the bonus accrues on the equity shares only.
16 March 2010
agree
16 March 2010
Agreed
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