Question
 A company may issue fully paid-up bonus shares to its
members out of _______________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: Provided that no issue of bonus shares shall be made by capitalising reserves created by the revaluation of assets.
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