Issue of Bonus Shares

[Mohan B K bk]

Dear Members,

 

My Co. a listed public Co.wants to issue bonus shares.

 

To my understanding first we have to convene a BOD fix the record date and give notice of the sme to SE(21 days) and pass resolution at GEn Meeting for the issue of Bonus shares. and after the record date is over prepare a list of share holders entitled for Bonus shares.

 

The clarification whcih i require is , Should 21 days  notice to stock exchage be given as per listing agreement or 42 days as per Co. Law.

further should we wait for the record date to get over to hold AGM or can we hold AGM prior to the REcord date fixed. eg

BOD 31 july, Record date fixed 31st Aug, Can i hold AGM before 31st Aug.

Further what is the minimum days the register be kept open for the aobe purpose,

Kindly advise at the earliest

Regards

Mohan

[chakri hegde]

Dear Sir,

 Below is the procedure for issue of Bonus shares

1.     Hold the Board meeting and get the approval for issue of Bonus Shares. The resolutions to be passed at the General meeting to be approved by the BOD.

2.     Immediately after the BM, intimate the proceedings of the BM to the SEs.

3.     As per SEBI guidelines, the bonus issue proposal to be implemented within 6 months from the date of passing of the resolution in the BM.

4.     Arrangements to be made for convening the General meeting of Members and send three copies of the notice to SEs and comply with provisions of the Companies Act relating to General Meeting.

5.     Hold the General Meeting and pass the resolution and a copy of the proceedings to forward to the SEs.

6.     In consultation with the SE, fix the book closure date or record date and the same to be approved by the BOD. Issue notice u/s 154 of the Act, in two news papers (one in English and another in Regional Language)

7.     Give 42 days notice to the SE before the date of book closure/record date

8.     After the record date, process the share transfers received and prepare the final list of members entitled for bonus shares on the basis of Register of Members updated. This list to be approved the BOD

9.     After that hold the BM, pass the resolution for issue of shares and file Form No 2 for allotment of shares within 30 days.

10.   Make an application to SE for listing of shares issued.

In case of listed companies they will have comply with SEBI (DIP) guidelines,2000 for issue of bonus shares ( Chapter XV) 

As per my knowledge, 

Record Date and Book Closure Date is

In case of Demat Securities--- 15 calender days and

In case of physical securities--  21 calender days.

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With Best Wishes
Chakri G Hegde
Indo Nissin Foods Ltd
Bangalore

[Mohan B K bk]

Dear Chakri Hegde,

 

Thanks for the Information, kind of u.

Regards.

Mohan