Bonus shares

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Querist : Anonymous

Querist : Anonymous (Querist)

26 October 2012 Why bonus shares is allowed for fully paid equity shares only?

Ajay Mishra

Ajay Mishra (Expert)
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26 October 2012 Hi

Generally it is a pre condition for shareholder that until he paid the total amount of shares he has no right to get bonus from the company. Then the company firstly collect the partly paid shares then issued fully paid bonus shares to shareholders.

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Rohit Agarwal

Rohit Agarwal (Expert)
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26 October 2012 The basic reason being that bonus shares are issued by capitalizing free reserves. Bonus shares being fully paid up shares warrants that it should be issued to such shareholders only holding fully paid up shares as on closure date.

Ajay Mishra

Ajay Mishra (Expert)
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26 October 2012 Hi

More details of Bonus Issue, go to the following link:

https://www.caclubindia.com/share_files/issue-of-bonus-shares-37558.asp#.UIo8CbJlS8o

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2012 thanks for answer