Section 63 provides that a company may issue fully paid-up bonus shares to its members, in any manner whatsoever, out of: a. Its free reserves; b. The securities premium account; or c. The capital redemption reserve account. No issue of bonus shares shall be made by capitalizing reserves created by the revaluation of assets. The bonus shares shall not be issued in lieu of dividend.
1. Preparation of notice, agenda and minutes of the Board and General meetings approving the Bonus Issue. 2. Preparation of Letter of Offer in Form PAS 4. 3. Preparation, certification and filing of Form MGT 14. 4. Preparation, Certification and filing of Form PAS 3. 5. Advise on post allotment compliance.
1. For Form MGT 14: a. Certified copy of the Special Resolution for alteration of AOA (if required) and resolution approving bonus issue. b. Notice of the General Meeting. c. Explanatory statement comprising the following: i. Bonus issue has been made out of free reserves built out of the genuine profits or securities premium or capital redemption reserve account. ii. Reserves created by revaluation of assets are not capitalized. iii. Company has not defaulted in payment of interest or principal in respect of fixed deposits and/ or debt securities issued by it or in respect of the payment of statutory dues of the employees such as contribution to provident fund, gratuity, bonus etc. iv. Partly paid-up shares are made fully paid-up. 2. For Form PAS 3: a. Certified copy of the board resolution for allotment. b. List of allottees.