4 Main Guidelines for Issue of Bonus Shares

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 [...]