10 June 2021
A company has in its board meeting approved split 1 share of Rs. 5/- in 2.5 share of Rs.2/-.
Further in the same board meeting 1:1 Bonus has been approved. First shares et split and then the bonus shares would be allotted of course all subject to approval of shareholders.
So efectively if one holds one share theoretically he would have 5 shares once the process is completed.
However the question arises is how whether Company can allott bonus shares in fraction?
21 July 2021
Yes please but in this case company would be splitting first and then issue the shares in the same meeting. After bonus it becomes whole number! However is it technically correct? Thanks for your response!
22 July 2021
Yes Please! However the company in this clearly states that Bonus shares shall be issued after sub-division! May please see the filing by Tide Water! Thanks for your response!
CAclubindia
