bonus issue

Giridhar S Karandikar (Team Lead)     25 March 2019

yes it can be utilized provided they are genuine profits credited to capital reserve

Shivam RC (Student)     27 March 2019

As per the Provision of Section 63 of the Companies Act 2013 :

A company may issue fully paid-up bonus shares to its members out of

[i] its free reserves;

[ii] the securities premium account; or

[iii] the capital redemption reserve account:

Provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets ( Revaluation Reserve ).

Hence, Capital Reserve cannot be utilised for issuing fully paid up Bonus Shares.

Regards.

Bhaskar Marathi   27 March 2019

if capital reserve realised in cash.. can I utilise it.?

Giridhar S Karandikar (Team Lead)     27 March 2019

yes you can utilize it