Query about bonus share...

the provision of section 78(1) would apply for the utilization securities premium for issuing bonus shares.  As per the section securities premium account can be used to issue bonus shares as per the section given below:

Application of premiums received on issue of 1[securities].—(1)

Where a company issues 1[securities] at a premium, whether for cash or

otherwise, a sum equal to the aggregate amount or value of the premiums on

those 1[securities] shall be transferred to an account, to be called "the 1[securities]

premium account"; and the provisions of this Act relating to the reduction of the

1[securities] capital of a company shall, except as provided in this section, apply

as if the 1[securities] premium account were paid-up 1[securities] capital of the

company.

(2) The 1[securities] premium account may, notwithstanding anything in subsection

(1), be applied by the company—

(a) in paying up unissued 1[securities] of the company to be issued to

members of the company as fully paid bonus 1[securities];

(b) in writing off the preliminary expenses of the company;

(c) in writing off the expenses of, or the commission paid or discount

allowed on, any issue of 1[securities] or debentures of the company; or

(d) in providing for the premium payable on the redemption of any

redeemable preference 1[securities] or of any debentures of the company.

the provision of section 78(1) would apply for the utilization securities premium for issuing bonus shares.  As per the section securities premium account can be used to issue bonus shares as per the section given below:

Application of premiums received on issue of 1[securities].—(1)

Where a company issues 1[securities] at a premium, whether for cash or

otherwise, a sum equal to the aggregate amount or value of the premiums on

those 1[securities] shall be transferred to an account, to be called "the 1[securities]

premium account"; and the provisions of this Act relating to the reduction of the

1[securities] capital of a company shall, except as provided in this section, apply

as if the 1[securities] premium account were paid-up 1[securities] capital of the

company.

(2) The 1[securities] premium account may, notwithstanding anything in subsection

(1), be applied by the company—

(a) in paying up unissued 1[securities] of the company to be issued to

members of the company as fully paid bonus 1[securities];

(b) in writing off the preliminary expenses of the company;

(c) in writing off the expenses of, or the commission paid or discount

allowed on, any issue of 1[securities] or debentures of the company; or

(d) in providing for the premium payable on the redemption of any

redeemable preference 1[securities] or of any debentures of the company.