Share Capital and Types of Shares — SPCC STD 11 Commerce — Question
Gujarat BoardEnglish MediumSTD 11 CommerceSPCCShare Capital and Types of Shares2 Marks
Question
State the condition to issue bonus share.
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Answer
The Company issues bonus shares in the following circumstances:
(1) Unsolicited amount: Bonus share can be given out of the profit to repay the unsolicited amount on the partially reimbursed share.
(2) Reserve fund: The company has a large reserve fund or profit-loss account balance and bonus shares can be given to benefit the shareholders.
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