Form with which the board of directors of a corporation records the contents of its first meeting.
Board Meeting Corporate For Bonus Issue In Kings
State:
Multi-State
County:
Kings
Control #:
US-0007-CR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
Can I sell bonus shares immediately? The shares are credited in case of a bonus issue a few days (normally 15 days) after the ex-date. Thus the investor is unable to sell the share before it is credited to his demat account because doing so could result in an auction.
To expedite this process, SEBI has decided that, starting from October 1, 2024, bonus shares will be traded under a T+2 timeline. This means that bonus shares will be available for trading within two trading sessions after they are issued to shareholders.
The issuance of bonus shares requires approval from the company's Board of Directors. Once approved, the bonus shares are credited directly to the shareholders' accounts. These shares are allocated in a specified ratio, such as , meaning shareholders receive 3 bonus shares for every 1 share they already hold.
As per Regulation 295(1) of the ICDR Regulations, bonus issues must be implemented within 15 days of board approval. SEBI defines the implementation date as when the trading of bonus issues commences.
Procedure of issue of Bonus issue: Call a Board Meeting to consider. increase in authorized capital (if required), issue of bonus shares and. for taking necessary steps in that regard to convening the General Meeting, to pass an Ordinary or Special Resolution, if articles so require.
From an accounting perspective, a bonus issue is a simple reclassification of reserves which causes an increase in the share capital of the company on the one hand and an equal decrease in other reserves. The total equity of the company therefore remains the same although its composition is changed.
More info
A company may decide to issue extra shares, free of charge, to existing shareholders in the same proportion as their existing holding. Mostly, the Board of Directors Meetings of a company go as expected.Convene a Board Meeting: The company must convene a Board Meeting approving. The allotment of the bonus shares and follow all the protocols for the same. Board resolutions; Shareholders' resolutions; Share certificates; Common seal (optional) and; Registers.