What is Issue of bonus shares Notice to be given to Registrar for alteration of share capital Section 63 and 64 of Indian Companies Act 2013

Issue of bonus shares and Notice to be given to Registrar for alteration of share capital are defined under Section 63 and 64 of Indian Companies Act 2013. Provisions under these sections are:

Section 63 of Indian Companies Act 2013 "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.

(2) No company shall capitalise its profits or reserves for the purpose of issuing fully paid-up bonus shares under sub-section (1), unless-

(a) it is authorised by its articles;

(b) it has, on the recommendation of the Board, been authorised in the general meeting of the company;

 

(c) it has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it;

(d) it has not defaulted in respect of the payment of statutory dues of the employees, such as, contribution to provident fund, gratuity and bonus;

(e) the partly paid-up shares, if any outstanding on the date of allotment, are made fully paid-up;

(f) it complies with such conditions as may be prescribed.

(3) The bonus shares shall not be issued in lieu of dividend.

Section 64 of Indian Companies Act 2013 "Notice to be given to Registrar for alteration of share capital"

(1) Where -

(a) a company alters its share capital in any manner specified in sub-section (1) of section 61;

(b) an order made by the Government under sub-section (4) read with sub-section (6) of section 62 has the effect of increasing authorised capital of a company; or

(c) a company redeems any redeemable preference shares, the company shall file a notice in the prescribed form with the Registrar within a period of thirty days of such alteration or increase or redemption, as the case may be, along with an altered memorandum.

Punishment for violation of Section 64 of Indian Companies Act 2013

(2) If a company and any officer of the company who is in default contravenes the provisions of sub-section (1), it or he shall be punishable with fine which may extend to one thousand rupees for each day during which such default continues, or five lakh rupees, whichever is less.

 

What is Power of limited company to alter its share capital What is the procedure for Further issue of share capital Section 61 and 62 of Indian Companies Act 2013

What is Issue of bonus shares Notice to be given to Registrar for alteration of share capital Section 63 and 64 of Indian Companies Act 2013

Is unlimited company to provide for reserve share capital on conversion into limited company What is Reduction of share capital Section 65 and 66 of Indian Companies Act 2013

What are the Restrictions on purchase by company or giving of loans by it for purchase of its shares What is Power of company to purchase its own securities Section 67 and 68 of Indian Companies Act 2013

What is Transfer of certain sums to capital redemption reserve account What is Prohibition for buyback in certain circumstances Section 69 and 70 of Indian Companies Act 2013

What is Debenture How to issue debenture Section 71 of Indian Companies Act 2013

What is Power to Nominate Section 72 of Indian Companies Act 2013

ACCEPTANCE OF DEPOSITS BY COMPANIES

What is Prohibition on acceptance of deposits from public Section 73 of Indian Companies Act 2013

Repayment of deposits accepted before commencement of this Companies Act What is Damages for fraud Section 74 and 75 of Indian Companies Act 2013

What is Acceptance of deposits from public by certain companies What is the Duty to register charges, etc Section 76 and 77 of Indian Companies Act 2013

What is Application for registration of charge What is the meaning of Section 77 to apply in certain matters What is Date of notice of charge Section 78, 79 and 80 of Indian Companies Act 2013

 

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