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What are the conditions that must be satisfied for a bonus issue according to the Companies Act, 1956?
  • a)
    The Articles of Association should permit bonus issue, and the company should have sufficient undistributed profits.
  • b)
    The company should increase its authorized capital, and the bonus issue proposal should be approved by the Controller of Capital Issues.
  • c)
    The company should have a provision for revaluation reserves, and the bonus issue should replace dividend payments.
  • d)
    The company should have issued fully convertible debentures, and the bonus issue should be made within 3 months of approval.
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What are the conditions that must be satisfied for a bonus issue accor...
The Articles of Association must allow bonus issues, and the company should have undistributed profits to make a bonus issue.
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What are the conditions that must be satisfied for a bonus issue according to the Companies Act, 1956?a)The Articles of Association should permit bonus issue, and the company should have sufficient undistributed profits.b)The company should increase its authorized capital, and the bonus issue proposal should be approved by the Controller of Capital Issues.c)The company should have a provision for revaluation reserves, and the bonus issue should replace dividend payments.d)The company should have issued fully convertible debentures, and the bonus issue should be made within 3 months of approval.Correct answer is option 'A'. Can you explain this answer?
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What are the conditions that must be satisfied for a bonus issue according to the Companies Act, 1956?a)The Articles of Association should permit bonus issue, and the company should have sufficient undistributed profits.b)The company should increase its authorized capital, and the bonus issue proposal should be approved by the Controller of Capital Issues.c)The company should have a provision for revaluation reserves, and the bonus issue should replace dividend payments.d)The company should have issued fully convertible debentures, and the bonus issue should be made within 3 months of approval.Correct answer is option 'A'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What are the conditions that must be satisfied for a bonus issue according to the Companies Act, 1956?a)The Articles of Association should permit bonus issue, and the company should have sufficient undistributed profits.b)The company should increase its authorized capital, and the bonus issue proposal should be approved by the Controller of Capital Issues.c)The company should have a provision for revaluation reserves, and the bonus issue should replace dividend payments.d)The company should have issued fully convertible debentures, and the bonus issue should be made within 3 months of approval.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What are the conditions that must be satisfied for a bonus issue according to the Companies Act, 1956?a)The Articles of Association should permit bonus issue, and the company should have sufficient undistributed profits.b)The company should increase its authorized capital, and the bonus issue proposal should be approved by the Controller of Capital Issues.c)The company should have a provision for revaluation reserves, and the bonus issue should replace dividend payments.d)The company should have issued fully convertible debentures, and the bonus issue should be made within 3 months of approval.Correct answer is option 'A'. Can you explain this answer?.
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