Here is a compilation of top five problems on bonus issue of shares with their relevant solutions. Bonus Issue of Shares: Problem with Solution # 1: The following are the extracts from the draft Balance Sheet of A Ltd., as on December 31,2010 A resolution was passed by the company declaring bonus of 25% on equity shares to be provided [...]
After reading this article you will learn about:- 1. Meaning of Right Issue 2. Guidelines Issued By SEBI for Right Issues 3. Advantages. Meaning of Right Issue: Rights issue is an invitation to the existing shareholders to subscribe for further shares to be issued by a company. A right simply means an option to buy certain securities at a certain [...]
This article throws light upon the four main guidelines for the issue of bonus shares. The guidelines are: 1. Conditions for Bonus Issue 2. Restriction on Bonus Issue 3. Bonus Shares only against Reserves, etc. if Capitalised in Cash 4. Completion of Bonus Issue. Guideline # 1. Conditions for Bonus Issue: Subject to the provisions of the Companies Act, 1956 [...]