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प्रश्न
Answer in brief.
State the provisions related to Bonus Shares.
उत्तर
Bonus issues refer to the fully paid-up shares given to its existing equity shareholders without any cost, based upon the number of shares they have. Provisions related to Bonus Shares are as follows:
- A company can issue Bonus Shares only out of:
• Free reserves or
• Securities Premium Account or
• Capital Redemption Reserve Account - A company cannot issue Bonus Shares only out of reserves created by the Revaluation of Assets.
- The company also cannot issue bonus shares instead of paying a dividend.
- Once the announcement for Bonus Shares is made by the Board of Directors then it cannot be withdrawn.
- Bonus shares are fully paid up shares. Shareholders cannot give away their bonus shares to another person.
- There is no minimum subscription to be collected.
APPEARS IN
संबंधित प्रश्न
In ________, shares of a company are offered to the public for the first time.
___________ is offered to existing equity shareholders.
State whether the following statement is true or false.
Sweat Equity shares are offered to Directors or employees of a company.
Find the odd one.
Complete the sentence.
In Book Building Method, the final price at which shares are offered to investors is called as ______
Answer in one sentence.
Name the method under which the issue price of shares is fixed through a bidding process.
Correct the underlined word and rewrite the following sentence.
Company enters into an underwriting agreement with the shareholders.
Correct the underlined word and rewrite the following sentence.
Bonus shares are offered to existing employees of a company.
Explain the following term/concept.
Employees Stock Option Scheme
Explain the following term/concept.
Further Public Offer
Study the following case/situation and express your opinion.
Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.
- Authorised capital
- Subscribed capital
- Issued capital
Distinguish between the following.
Fixed Price Issues and Book Building
Match the pairs.
| Group A | Group B |
| a) Bond holders | 1) Deals with acquisition and use of assets |
| b) IPO | 2) Declared in Annual General Meeting |
| c) Corporate finance | 3) Any issue after first-time public offer |
| d) Final dividend | 4) Deals with acquisition and use of capital |
| e) Preference shares | 5) First-time public offer |
| 6) Fixed rate of dividend | |
| 7) Owners | |
| 8) Fluctuating rate of dividend | |
| 9) Creditors | |
| 10) Declared in board meeting |
Write a word or a term or a phrase which can substitute the following statements.
Highest bid price in Book Building method.
Find the odd one.
What is Employee Stock Purchase scheme?
Explain provisions that the company must fulfil.
Explain Pricing methods to offer shares to the public.
