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
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.
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