26 January 2010
sir, our co was incorporated in 2005-06, earning profits every year, no dividend was ever declared or paid. now we want to make bonus issue. can we make bonus issue without ever giving dividends earlier. can we use 100% of the reserves to make bonus issue.urgent please.btw, ours is a pvt co.,
26 January 2010
Where a company adopts Table A of the companies Act,1956 or where it has not so adopted but has an express provision in the AOA to allow capitalization of profits or where it has not excluded the specific clause of Table A as inapplicble in its otherwise independent AOA, capitalisation of profits is very well possible by issuing bonus shares.
CAclubindia
