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Bonus shares

1. Whether Capital reserve can be utilized for issuing bonus shares? 2. If a company has convertible debentures then whether authorized capital to be increased to the extent of equity and bonus shares for debentures holders also?


Nivedha Balaji

Nivedha Balaji

CA Inter

7K+

22-Mar-21 23:59

28

Answers (4)

1. Capital reserves representing realised gains or collected in cash can be used. 2. Yes, shortfall to be increased.


Sahibdeep Singh

Sahibdeep Singh

Moderator

23-Mar-21 11:26

1. Capital reserves representing realised gains or collected in cash can be used. 2. Yes, shortfall to be increased.

Whether such capital reserve can be used for converting partly paid into fully paid shares by way of bonus?


Nivedha Balaji

Nivedha Balaji

CA Inter

7K+

23-Mar-21 15:50

Whether such capital reserve can be used for converting partly paid into fully paid shares by way of bonus?

Yes, can be used. Restriction is specifically for Securities Premium and Capital Redemption Reserve only.


Sahibdeep Singh

Sahibdeep Singh

Moderator

23-Mar-21 17:11

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