AUTHORIZED CAPITAL:
100000 equity shares of 10 each
ISSUED AND SUBSCRIBED CAPITAL
90000 equity shares of 10 each paid up....
company decided to issue bonus shares in 1:4 ratio..
what will be the increased AUTHORIZED share capital?
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BONUS SHARES
Replies (8)
450000 shares
350000 shares
sir how 350000? is it not 122500? I.e 90000shares *1/4=22500shares
22500+100000= so authorized capital should be increased by 22500 shares right?
22500+100000= so authorized capital should be increased by 22500 shares right?
ratio is 1:4 not 4:1.so if 1:4 ratio then for 1 share 4 shares need to be issued. so for 90000shares 360000 shares need to be issued. 10000 authorized share capital already avay.so additional 350000 authorized share capital required
sir if ratio was 4:1 then it should be increased by 12500? and not 22500?
yes that's right
If ratio is 1:4 (as mentioned in query ) then for every single share holder , they will get additional 4 bonus shares . Is it correct?.
yes absolutely
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