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5 Cards in this Set
- Front
- Back
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What is bonus shares? |
when a company accumulates large distributable profits, it converts these accumulated profits into capital and divide divide the capital among the existing members in proportion to their entitlements. Members don't have to pay any amount for such as they are given free. |
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What are the conditions for issue of Bonus? |
1) bonus issue must be authorised by the articles of the company 2) company has not defaulted in payment of interest or principal in respect of fixed deposits debt security issued by it 3) existing shares are fully paid up 4) Yepme company has not defaulted in respect of payment of statutory dues. |
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What are the sources for issue of Bonus shares? |
Free Reserves Security premium account Capital redemption reserve |
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Can company issue bonus shares as a dividend? |
No |
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Can company withdraw announcement of Bonus shares shares once the comment by board? |
No |
