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Company law

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(Querist)
10 February 2014 Dear corporates,
need a bit of ur valuable time for solving my query

can a co. for particular financial year issue bonus shares without paying dividend for the same financial year?
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CS Ankur Srivastava

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CS Ankur Srivastava (Expert)
13 February 2014 Yes. Bonus share are the capitalization of earlier year profits and current dividend is payable from the current profit. Whether there is profit in the current year or not the company may capitalized its earlier year profits.
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