M s XYZ Ltd is desirous to utilized Capital Redemption Reserve for the purpose of issuing partly pai...........

Companies Act-Phase (I & II) Share capital and debentures

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M/s XYZ Ltd. is desirous to utilized Capital Redemption Reserve for the purpose of issuing partly paid bonus shares to the members. Whether company can do so?

Yes

Partly Yes

Partly No

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Explanation:

As per section 55(4) of the Companies Act, 2013 Capital Redemption Reserve shall be utilized only for the purpose of issuing Fully paid bonus shares to the members)

(4) The capital redemption reserve account may, notwithstanding anything in this section, be applied by the company, in paying up unissued shares of the company to be issued to members of the company as fully paid bonus shares. Explanation.—For the purposes of sub-section (2), the term ‘‘infrastructure projects’’ means the infrastructure projects specified in Schedule VI.

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