Bonus Issue

[Priyanka Jain]

Dear Sir/Mam

I will alter my article regarding capitalisation of profit. so someone pls provide me format of capitalisation of profit for article.

 

Rgs

Priyanka Jain

[DR.MARIAPPAN GOVINDARAJAN]

Have you got clarification for the said subject? If not please inform.

[DR.MARIAPPAN GOVINDARAJAN]

No format is there. You have to alter AOA for the issue of bonus shares as per the provisions contained in the Companies Act, 2013. For the issue of bonus share ordinary resolution is to be passed in the general meeting and accordingly the same may be capitalized. No specific format is there.

AI Summary

Bonus share issuance requires amending articles and passing an ordinary resolution to capitalize profits under company law. Bonus share issuance requires altering the Articles of Association to provide for capitalisation of profits and issuing bonus shares; there is no specific format and the allotment must be authorised by an ordinary resolution in the general meeting in accordance with applicable company law provisions.