issue of preference bonus preference shares

1. yes, refer section 81& 80

2. No

3.Refer section 80

can a company issue bonus preference shares to its prefernce shareholders

Yes the company can issue.

A listed company wants to issue bonus Equity shares to its preference shareholders (not to equity shareholders) Whether it can do so????? 
 

In which section it is written that preference share holders can be issued bonus shares. as only two benefits are provided to the preference shareholders.

Dear friends,

Accumulated profits of the company belong to the equity shareholders.  If the Articles so permit, such profits can be capitalised by issue of bonus shares (whether equity or preference) or even debentures.  Article 96 & 97 of Table A deal with capitalisation of profits.  Hence equity shareholders can be issued bonus in any form (equity shares, preference shares or debentures).

As regards preference shareholders, they are entitled to dividend at the agreed rate.  In case bonus shares (equity or preference)  are to be issued to preference shareholders, it will amount to variation of rights of shareholders and will need approval of equity & preference shareholders in their class meetings u/s 106 of the Act.  Hence in my view preference shareholders can also be issued bonus shares with the approval of members u/s 106.

As regards, minimum rate of coupon rate of dividend, no such rate has been prescribed in the Act and the company can decide any minimum rate.  I  have come across companies having issued even 0% Preference Shares.

Contrary views are welcome.

Thanks

i think No ?

I think no.