What is gap between two bonus share for company

63. Issue of bonus shares

(1) A company may issue fully paid-up bonus shares to its members, in any manner

whatsoever, out of—

(i) its free reserves;

(ii) the securities premium account; or

(iii) the capital redemption reserve account:

Provided that no issue of bonus shares shall be made by capitalising reserves created

by the revaluation of assets.

(2) No company shall capitalise its profits or reserves for the purpose of issuing fully

paid-up bonus shares under sub-section (1), unless—

(a) it is authorised by its articles;

(b) it has, on the recommendation of the Board, been authorised in the general

meeting of the company;

(c) it has not defaulted in payment of interest or principal in respect of fixed

deposits or debt securities issued by it;

(d) it has not defaulted in respect of the payment of statutory dues of the

employees, such as, contribution to provident fund, gratuity and bonus;

(e) the partly paid-up shares, if any outstanding on the date of allotment, are

made fully paid-up;

(f) it complies with such conditions as may be prescribed.

(3) The bonus shares shall not be issued in lieu of dividend.