Query: Issue of Bonus share

Company can not do like that. Comany has to issue the Bonus shares to all the shareholders.

Because In eyes of the law, Every shareholder is equal.

However. It is possible that other 6 Shareholder gave away their right to bonus shares.

As happened in the Reliance Power recently.

In your case, You can do the following.

(1) Pass resolution giving the bonus shares to all.

(2) At the time of Exercising the Bonus Issue option, the other 6 Shareholder will not exercise the option (It is one kind of consent)

(3) Remaining 4 shareholder will exercise the option.

So, Your problem will be solved & Your freind will also be satisfied.

Thanks for your kind help. Now i can easily convince my friend with the help of reliance power example. As i fail to convince him by legal or logical arguments. 

But what do you think procedure mentioned in your II reply s enough as far as ROC is concerned.

Regards

Yes, Procedure mentioned in 2nd reply is enough as far as ROC is concerned.

Because Reliance have already done It.

And The act says the Issue of Bonus Shares to the shareholders. Act has nowhere mentioned that the Person has to take the bonus shares compulsorily. It is person's own choice, whether to take the bonus shares or not.

Some person doesn't want to take the shares because of the Income Tax Management or They want to help the company indirectly.

Okay. Thanks you very much.

Very Interesting Topic sir...

SIr, I hev one doubt, should we take No Objection Letter from the share holders who waive their bonus shares or not taking the bonus shares, to avoid future consequences???

Yes, You can take NOC from the other shareholders & will keep it in the company for future reference/consequence purpose and/or can file the same to any authority.

Ankur sir,

Very logically clear this point by you.

Can U provide me the current procedure of Demate of Share Certificate which are physically in our hand 

Procedure for Dematerialization

To dematerialize any physical security:

a) open a demat account with a DP.

b) fill in a DRF (Demat Request Form) and submit the same with the physical certificate/s to the DP for dematerialization.

c) DP defaces and sends the certificates to the Issuer/Registrar who credits an equivalent number of securities in the demat account, maintained by CDSL.

d) For each ISIN, a separate DRF has to be used.

Agree with the Above answer.

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Advise: While applying the Demat Request, first of all check the signatures. If there is any defect then attch the affidavit because most of the Registrars rejcets the form If there is difference in signature.

Dear Experts,

In my company, they issued shares at a premium on 20.8.09 to new groups. Now, the management wants to issue bonus shares against share premium A/c on 20.8.09 to promoter shareholders only not to all shareholders i.e including new group.

The mgt. stated that based on the company's performance only, they accepted the shares at premium? The entire premium amount is belonging to us only, this is our goodwill. We cannot distribute the premium amount to all shareholders.

Pls clarify?

Sree

The Premium belongs to both i.e. Old Management and New Management.

You can not Issue bonus shares to only the Old Mnagement, as New Management shall also have the equal right in Company's share premium amount.

Moreover, If your directors want the money for the goodwill then they shall have to receive such amount in cash i.e. Black Money.

Because once the shares are issued and cheque received form New Management the money belongs to the company and not to the Old Management

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If you need further clarification than contact me

Ankur Shah (Practicing Company Secretary)

“Guru Gautam” Bungalow, Inside Parshwa Tower,

Nr. Shyamal Cross Road, 132ft. Ring Road,

Satellite, Ahmedabad – 15

Contact: + 91-9427633901

E-mail: ankurjewel @ gmail.com

Blog: csankur.blogspot.com

Sir,

Thank you for your reply. Somebody gave advice to Management, to do like this. I do think, this options may possible.

1. Can i get NOC from new shareholders for issue of bonus shares out of premium excluding them? OR

2. Issue shares to all shareholders with mutual agreement to transfer such shares to old shareholders after sometime?

If there is any wrong, let me know.

Thanks in advance.

Sree