No issue of bonus shares shall be made by capitalizing reserves created by the revaluation of assets...........

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

No issue of bonus shares shall be made by capitalizing reserves created by the revaluation of assets?

True

False

Partly True

Partly False

According to Sec 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.

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