Bonus Issue

[Priyanka Jain]

Dear Sir/Mam

I want to know the complete process of bonus issue stepwise for a private company.

 

 

AI Summary

Guide to Issuing Bonus Shares in Private Companies: Key Steps and Approvals Required for Compliance A participant in a discussion forum inquired about the step-by-step process for issuing bonus shares in a private company. The response outlined that a bonus issue involves distributing profits as shares rather than cash dividends, increasing the company's issued capital while retaining assets. Conditions for issuing bonus shares include having sufficient undistributed profits, board and shareholder approval, and regulatory permissions. The procedure involves ensuring compliance with company articles, convening board and general meetings, notifying stock exchanges, and obtaining necessary approvals. Finally, the company must prepare allotment sheets, issue allotment letters, and update the Register of Members.