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    Question

    A company may issue fully paid-up bonus shares to its

    members, in any manner whatsoever, out of-
    A Its free reserves; Correct Answer Incorrect Answer
    B the securities premium account; Correct Answer Incorrect Answer
    C the capital redemption reserve account. Correct Answer Incorrect Answer
    D A and B only. Correct Answer Incorrect Answer
    E A, B and C. Correct Answer Incorrect Answer

    Solution

    As. 63 of the Companies Act, 2013- A company may issue fully paid-up bonus shares to its members , in any manner whatsoever, out of— (i) its  free reserves ; (ii) the securities premium account; or (iii) the capital redemption reserve account: Provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets. Snapshoot - Topic covered in Live class for SEBI Legal Course of ixamBee

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