Question
Which type of share is issued by a company to its
existing shareholders without receipt of any consideration from shareholders for issuance of such share?Solution
The issuance of bonus shares is governed by Section 63 of the Companies Act, 2013 . Nature of Issuance: Bonus shares are additional , fully paid-up shares given to existing shareholders for free (without any cash consideration). They are issued in proportion to the shares already held by the shareholder (e.g., a 1:1 bonus issue means one free share for every one share held).
What is the primary characteristic that distinguishes common equity from preferred equity in the capital markets?
According to the revised RBI instructions, when must a Tier 1 Urban Co-operative Bank seek RBI’s prior approval to grant unsecured advances?
Packing credit limits are granted _________
As per realization principle, revenue will be recognized:
What are the tax benefits offered to companies operating in GIFT city?
What are the Over the counter (OTC) derivatives considered risky?
According to the MSMED Act (amendment 2020), an enterprise with an investment of ₹7 crore in plant and machinery and a turnover of ₹35 crore will be...
In Six Sigma methodology, the term “sigma” is used to indicate the extent to which a process varies from its expected performance. In this context, ...
Which bank has been assigned the Lead Bank Responsibility for the newly formed district of Maihar in the state of Madhya Pradesh?
In a normal distribution, what percentage of observations lie within one standard deviation of the mean?
