https://www.taxtmi.com/caselaws?id=110139 Bonus shares may be issued from revaluation reserve where the statutory framework permits capitalisation of reserves and the articles of association do not expressly prohibit it. SEBI guidelines were inapplicable to existing private, closely held and other unlisted companies, while the Department of Company Affairs circular was advisory rather than mandatory; neither created a legal bar. Article 182 had to be construed as a whole and did not prohibit capitalisation of revaluation reserve for fully paid bonus shares. The challenge to the company's authority to issue such shares therefore failed. en-us Tue, 09 Aug 2005 00:00:00 +0530 Mon, 09 Aug 2021 15:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=110139 Bonus shares may be issued from revaluation reserve where the statutory framework permits capitalisation of reserves and the articles of association do not expressly prohibit it. SEBI guidelines were inapplicable to existing private, closely held and other unlisted companies, while the Department of Company Affairs circular was advisory rather than mandatory; neither created a legal bar. Article 182 had to be construed as a whole and did not prohibit capitalisation of revaluation reserve for fully paid bonus shares. The challenge to the company's authority to issue such shares therefore failed. Case-Laws Companies Law Tue, 09 Aug 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=110139