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Bonus and right issue

Accountancy

Hello, Can fraction of a share be issued? If not assuming I hold 2 shares of a company and the company announces a bonus issue in ratio of 1:4, then will I be issued half bonus share or not? Kindly clarify.

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 09:55

643

Answers (7)

Shares cannot be issued in fractions.It should always be rounded off to the next number. Ex: 8.3 shares means 9 means.

Shankari C

CA Inter

★ 12K+

23-Sep-22 10:01

Fraction of shares wont be issued

CA Suraj Lakhotia

Admin

23-Sep-22 10:01

Shares *

Shankari C

CA Inter

★ 12K+

23-Sep-22 10:01

Shankari C

Shares cannot be issued in fractions.It should always be rounded off to the next number. Ex: 8.3 shares means 9 means.

ok but then I will not be eligible for rights or bonus issue, right?

Thread Starter

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 10:06

Thread Starter

Aswin Chandar

ok but then I will not be eligible for rights or bonus issue, right?

or I will get 1 share?

Thread Starter

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 10:07

The company will accumulate all fractional shares and sell. The proceeds would be distributed

CA Suraj Lakhotia

Admin

23-Sep-22 10:11

CA Suraj Lakhotia Admin

The company will accumulate all fractional shares and sell. The proceeds would be distributed

Sell to other existing shareholders at face value I suppose. Thanks sir.

Thread Starter

Aswin Chandar

CA Final

★ 40K+

23-Sep-22 10:19