TaxTMI 
TaxTMI 
Dear Sir/Mam
I want to know the complete process of bonus issue stepwise for a private company.
Bonus Issue
07 Jun 2013 
1 Reply 
1988 Views Asked by
Bonus share issuance requires undistributed profits and corporate plus regulatory approvals before allotment and statutory filing.
A bonus issue capitalizes undistributed profits and reserves by issuing fully paid shares pro rata to existing equity shareholders without cash subscription; it requires sufficient undistributed profits, conformity with the articles and authorized capital, board and shareholder approvals, and prescribed regulatory and stock exchange permissions. Procedural steps include board consideration, member notice and resolution, provisional allotment sheets, board allotment, public notice of register closure, allotment letters, statutory register entries, issuance of new share certificates, and filing the return of allotment with the registrar. (AI Summary)
A bonus issue capitalizes undistributed profits and reserves by issuing fully paid shares pro rata to existing equity shareholders without cash subscription; it requires sufficient undistributed profits, conformity with the articles and authorized capital, board and shareholder approvals, and prescribed regulatory and stock exchange permissions. Procedural steps include board consideration, member notice and resolution, provisional allotment sheets, board allotment, public notice of register closure, allotment letters, statutory register entries, issuance of new share certificates, and filing the return of allotment with the registrar. (AI Summary)