Sec 123(5) of companies act-
Provided that nothing in this sub-section shall be deemed to prohibit the capitalisation of profits or reserves of a company for the purpose of issuing fully paid-up bonus shares or paying up any amount for the time being unpaid on any shares held by the members of the company:
4 Replies
Vinayak Mishra
(192 Points)
Replied 09 March 2018
I didn't get you specify the point which you want to ask.....
Vinayak Mishra
(192 Points)
Replied 09 March 2018
Proviso must be interpret with the context of the main section. Section 123(5) provides that no dividend shall be paid to:
unregistered shareholder
not payable except in cash
Proviso creates an exception to this rule and provides that:
Companies may issue fully paid up bonus issue (general rule is that no dividend payable except in cash)
Payment of unpaid amount on any shares
I hope now you will understand the crisp of section123(5)
unregistered shareholder
not payable except in cash
Proviso creates an exception to this rule and provides that:
Companies may issue fully paid up bonus issue (general rule is that no dividend payable except in cash)
Payment of unpaid amount on any shares
I hope now you will understand the crisp of section123(5)
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