Can I issue bonus shares from my private limited company in Kanpur?
AM Asked by Amit Kumar from India
Quick Answer
Bonus shares are issued under Section 63 of the Companies Act, 2013 by capitalising reserves from securities premium or free reserves, by a special resolution.
Detailed Legal Analysis
Bonus shares are issued under Section 63 of the Companies Act, 2013 by capitalising reserves from securities premium or free reserves, by a special resolution. The company in Kanpur must file Form MGT-14 with the RoC and ensure compliance with Section 63(1) conditions.
Disputes are appealable to the NCLT and the Allahabad High Court under Section 61. Local compliance includes Shops and Establishments registration under Uttar Pradesh Rent Control Act 1972 for the Uttar Pradesh premises.
Bonus shares cannot be issued by revaluing assets without realizing the gains in cash. The authorised capital must be sufficient for the increased share capital.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.