-
Why does a company issue bonus shares?
Sometimes a company might not have made any profit during the year but would not like to leave the shareholders hanging.Therefore it might liquidate certain reserves which under statute cannot be...
-
Right share issue vs bonus share issue?
Right issue-An offer by company to the existing shareholders to acquire some more shares proportionally to the original shares they are holding, usually at relative cheap price while Bonus share...
-
Can a company issue free shares?
Yes it is possible and is called a bonus issue, the company must still fund the issue of the shares out of distributable reserves. Check for treatment on a bonus issue to ensure you use the correct...
-
Can a private limited company issue its preference share on premium?
Yes. Ref. section 78 of the companies act, 1956 in which word "Securities" has been used which includes shares,debenture,bonds and ther marketable securities as used in sec 2-h of Securities...
-
Can New company issue share at discount?
Most of the time, the new companies will offer their shares at discount prices. There is no law that governs/controls the prices at which the company can offer their shares to people for sale.