M s ABC Ltd has enough amounts in revaluation reserve Can the Company issue bonus shares out of it n...........

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

Download Solution PDF

M/s ABC Ltd. has enough amounts in revaluation reserve. Can the Company issue bonus shares out of it?

Yes

Approval of shareholders

Approval of BOD

छोटे Courses बड़े Results

Master Share capital and debentures

Prepare through Micro-courses

Try Now

Explanation:

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.

As per Section 63(1) of the Companies Act, 2013, no bonus shares shall be made by capitalizing reserve created by the revaluation of assets.

Report error

Submit Error