Be Capitalised And Distributed - Law Dictionary Search Results
Home Dictionary Name: be capitalised and distributedBe capitalised and distributed
Be capitalised and distributed, The expression 'be capitalised and distributed' in the resolution means 'is hereby capitalised and distributed'. In fact the whole tenor of the resolution shows that the distribution of the bonus shares became effective as from 30th Dec., 1954. If the ordinary shareholders became the owners of the bonus shares on and after Jan. 1, 1955 or on some later date, Shri Gopal Paper Mills v. CIT, (1971) 1 SCR 323: (1970) 2 SCC 80 (85): AIR 1970 SC 1750....
Bonus shares
Bonus shares, bonus share is an accretion. A bonus share is issued when the company capitalises its profits by transferring an amount equal to the face value of the share from its reserve to the nominal capital. In other words the undistributed profit of the company is retained by the company under the head of capital against the issue of further shares to its shareholders. Bonus shares have, therefore, been described as a distribution of capitalised undivided profit, Standard Chartered Bank v. Custodian, (2000) 6 SCC 427: AIR 2000 SC 1488 (1499). [Companies Act, 1956 Sch I, Table A, Rr. 96 (97)]...
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