Law
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
23 October 2011
wat abt if company declares bonus shares instead of dividend is it mandatory to provide for depreciation
24 October 2011
PROVISION FOR DEPRECIATION IS MANADATORY REQUIREMENT FOR THE PAYMENT OF DIVIDEND & NOT FOR BONUS SHARES.
COMPANY CAN ISSUE BONUS SHARES SUBJECT TO CERTAIN CONDITIONS LIKE PARTLY PAID UP SAHRES MADE FULLY PAID UP ETC. BUT NO REQUIREMENT OF DEPRECIATION. THUS COMPANY CAN CAPITALIZE THE PERMISSIBLE PROFITS/RESERVES FOR BONUS ISSUE.
BUT ISSUE OF BONUS SHARES IN LIEU OF DIVIDEND IS NOT PERMISSIBLE .
REGARDS
SANJAY KUMAR SAREEN
FACULTY OF COMMERCE STUDIES,PITAMPURA,DELHI
contactus@focs.in
COMPANY CAN ISSUE BONUS SHARES SUBJECT TO CERTAIN CONDITIONS LIKE PARTLY PAID UP SAHRES MADE FULLY PAID UP ETC. BUT NO REQUIREMENT OF DEPRECIATION. THUS COMPANY CAN CAPITALIZE THE PERMISSIBLE PROFITS/RESERVES FOR BONUS ISSUE.
BUT ISSUE OF BONUS SHARES IN LIEU OF DIVIDEND IS NOT PERMISSIBLE .
REGARDS
SANJAY KUMAR SAREEN
FACULTY OF COMMERCE STUDIES,PITAMPURA,DELHI
contactus@focs.in
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