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Which of the following condition of Section 63 is required to be complied with by the company before making the bonus issue?
  • a)
    Bonus issue is authorized by its articles
  • b)
    Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.
  • c)
    Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus.
  • d)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Which of the following condition of Section 63 is required to be compl...
Explanation:


  • Bonus issue is authorized by its articles: This condition is required to be complied with by the company before making the bonus issue. The company must have the authorization in its articles of association to issue bonus shares.

  • Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it: This condition ensures that the company is financially stable and able to meet its obligations towards fixed deposit holders and debt security holders.

  • Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus: This condition ensures that the company is compliant with all statutory requirements related to employee benefits and contributions.


Therefore, all of the above conditions (A, B, and C) need to be complied with by the company before making the bonus issue.
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Which of the following condition of Section 63 is required to be complied with by the company before making the bonus issue?a)Bonus issue is authorized by its articlesb)Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.c)Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Which of the following condition of Section 63 is required to be complied with by the company before making the bonus issue?a)Bonus issue is authorized by its articlesb)Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.c)Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following condition of Section 63 is required to be complied with by the company before making the bonus issue?a)Bonus issue is authorized by its articlesb)Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.c)Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following condition of Section 63 is required to be complied with by the company before making the bonus issue?a)Bonus issue is authorized by its articlesb)Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.c)Company has not defaulted in payment of statutory dues of the employees like PF contribution, gratuity, and bonus.d)All of the aboveCorrect answer is option 'D'. Can you explain this answer?.
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