Bonus share eligibility: capitalization must come from free reserves or cash-collected securities premium, not revaluation reserves. Bonus shares may be issued only from free reserves built out of genuine profits or from securities premium collected in cash; reserves created by revaluation of fixed assets shall not be capitalised for issuing bonus shares. Bonus shares shall not be issued in lieu of dividend.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Bonus share eligibility: capitalization must come from free reserves or cash-collected securities premium, not revaluation reserves.
Bonus shares may be issued only from free reserves built out of genuine profits or from securities premium collected in cash; reserves created by revaluation of fixed assets shall not be capitalised for issuing bonus shares. Bonus shares shall not be issued in lieu of dividend.
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