Can Bonus Equity Shares Be Issued to Preference Shareholders?

[venkatesh c.m]

Hi all,

Can Bonus Equity Shares Be Issued to Preference Shareholders?

--
Venkatesh.C.Mallabadi
Advocate & Corporate Law Advisor
#733, 12th, Main, 3rd Block
Rajajinagar,
Bangalore-10

[yoganand l]

are they issued in lieu of preference dividend ??

 

regards,

yogan.

 

 

--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
 
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com

[ashish sharma]

no, we can.t issue bonus equity shares to pref share  holder

 

On Thu, Jun 10, 2010 at 6:58 PM, venkatesh c.m <venkatesh...@gmail.com> wrote:

--

Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
 
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com

--
Ashish Sharma
ASHISH SHARMA & CO.
108, DURGA TOWER,
RDC, RAJ NAGAR,
GHAZIABAD.
MOBILE: 9312495375
              7838076488

[venkatesh c.m]

Dear Mr.Yoganand,

Yes my clients wants to isuue it in alternate to dividends?

[Rajesh Warrier (Gmail)]

Hi Venkitesh,

 

In my opinion, we cannot issue bonus shares to P Share holders.

 

If we look at Article 96 which speaks about Capitalisation, it provides that reserves can be capitalised by issue of bonus shares to members who would have been entitled to dividend......

 

Since P Share holders cannot be treated as members, bonus shares cannot be issued to them........

 

Warm Regards

 

Rajesh. A
Company Secretary
Muthoot Finance Limited
Kochi

[PAVAN G]

Dear Rajesh,

 

As mentioned by you, Equity shareholders are entitled to dividend.  My query is why Preference shareholders are not considered as members?

Regards,

Pavan

[Narayan S]

Hi

 

Your reply is well answered in the below link.

 

Please read the last 2 paragraphs apart from reading the full article.

 

http://jurisonline.in/2010/04/can-bonus-equity-shares-be-issued-to-preference-shareholders/

 

Regards

S.Narayan

On Thu, Jun 10, 2010 at 6:58 PM, venkatesh c.m <venkatesh...@gmail.com> wrote:

--
Find eNewsletters of ICSI Mysore at: http://www.icsi.edu/NewsEvents/enewsletters/tabid/1757/Default.aspx AND www.esnips.com/web/icsimysore
 
You received this message as you are subscriber. To unsubscribe email to: csmysore-u...@googlegroups.com

--
Regards
S.Narayan

[venkatesh c.m]

Dear Mr. Narayan,

I after coming across that article only i had got doubts in my mind about the said topic i was not clear about the topic hence was my query to the learned members of the group.

Thanks for posting the link for further discussion on the topic.

regards,
Venkatesh Mallabadi

[Narayan S]

Hi Venkatesh

 

There is no doubt to exist. As long as the Companies Act, 1956 does not prohibit issue of bonus shares to Preference shareholders you can do so.

 

Please take care of SEBI guidelines also.

 

Regards

S.Narayan

[venkatesh c.m]

yes, thanks i am working on it.

Thanks to all members

[yoganand l]

i feel that they can be given in lieu of preference dividend

then they wouldnt be called as bonus shares. you need to call them as issue of shares for a consideration other than cash.

 

regards,

yogan.

[Rajesh Warrier (Gmail)]

 

Thank you sir for sharing the article.....

 

 

 

Rajesh.

 

----- Original Message -----

[Vivek Hegde]

For your reference.

---------- Forwarded message ----------
From: "Rajesh Warrier \(Gmail\)" <warrier...@gmail.com>
Date: Jun 11, 7:25 pm
Subject: Can Bonus Equity Shares Be Issued to Preference Shareholders?
To: CSMysore

Thank you sir for sharing the article.....

Rajesh.

----- Original Message -----
  From: Narayan S
  To: csmy...@googlegroups.com
  Sent: Friday, June 11, 2010 6:24 PM
  Subject: Re: [CSMysore] Can Bonus Equity Shares Be Issued to
Preference Shareholders?

  Hi

  Your reply is well answered in the below link.

  Please read the last 2 paragraphs apart from reading the full
article.

 http://jurisonline.in/2010/04/can-bonus-equity-shares-be-issued-to-
pr...

  Regards
  S.Narayan

  On Thu, Jun 10, 2010 at 6:58 PM, venkatesh c.m