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    Question

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

    members from ________________
    A Capital redemption reserve account Correct Answer Incorrect Answer
    B Twenty per cent of its securities premium account Correct Answer Incorrect Answer
    C Twenty- five per cent of its capital reserve Correct Answer Incorrect Answer
    D All the above Correct Answer Incorrect Answer
    E Both (a) & (b) Correct Answer Incorrect Answer

    Solution

    Section 63. Issue of bonus shares- (1) 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

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