Procedure for Issue of Bonus Shares in Private Company [CS Hera Siddiqui]



Step I: Check and ensure that Article of Association contains points regarding the issue of Bonus shares, if not than alter the Article of Association first.

Step II: Check and ensure that the Authorized share capital of the Company is sufficient for the issue of Bonus shares, if not than first increase Authorized share capital of the Company.

Step III: Check and ensure that the sources out of which the bonus is to be made is sufficient.

Step IV: Call and conduct Board meeting and pass resolution for:

a) For Recommending Issue of Bonus shares.

b) For deciding the ratio of shares offering to the shareholders.

c) For Fixing the Date of Extra Ordinary General Meeting for seeking the consent of the members for issue of bonus shares.

Step V: Call and conduct Extra-Ordinary General Meeting of shareholders for passing the resolution of issuing bonus shares.

Step VI: File MGT-14 with ROC within 30 days of passing resolution.

Step VII: Call and conduct Board meeting for allotment of shares.

Step VIII: File PAS-3 with ROC.

Step IX: Issue of Share certificates.

Step X: Making entry in the Register of members.

Lex comply

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