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Explain the following term/concept:Capitalisation of Reserves - Secretarial Practice

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प्रश्न

Explain the following term/concept:
Capitalisation of Reserves

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उत्तर

(1) The process of issuing the bonus shares out of the company's profits or reserves is known as "Capitalisation of Profits or Reserves.
(2) It is a reward to shareholders, distributed in proportion to the number of shares each owns. The process has no impact on a corporation book value.

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Precautions to Be Taken by the Secretary While Corresponding with Members
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 6: Correspondence with Members - Exercises [पृष्ठ १०३]

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बालभारती Secretarial Practice [English] Standard 12 Maharashtra State Board
अध्याय 6 Correspondence with Members
Exercises | Q 2. 1. | पृष्ठ १०३

संबंधित प्रश्न

Shares issued free of cost to the shareholders are known as ______ shares.


Select the correct answer from the options given below and rewrite the statement.

Dividend is paid out of ______ of the company


Match the pairs.

Group 'A'

Group 'B'

a. Dividend Warrant

1. Instrument for payment of Interest

b. Return on Shares

2. Capitalisation of Building Fund

c. Bonus Shares

3. Electronic Clearing Service

d. ECS

4. Capitalisation of Reserve Fund

e. NEFT

5. National Electronic Fund Transfer

 

6. Dividend

 

7. Electronic Co-operative Society

 

8. National Electronic Fixed Transfer

 

9. Instrument for Payment of Dividend

 

10. Interest


Write a word or a term or a phrase which can substitute the following statement.

The authority which recommends the rate of dividend.


Write a word or a term or a phrase which can substitute the following statement.

A special kind of cheque issued by a company on its banker to pay certain sum of money as dividend to its members.


State whether the following statement is true or false.

Building fund is used for issue of bonus shares.


State whether the following statement is true or false.

Registered shareholder gets dividend through dividend coupons.


State whether the following statement is true or false.

Dividend is the portion of the profits of the company which is allotted to the holders of the debentures of the company.


State whether the following statement is true or false.

Every company must issue or despatch a share certificate to the allottee within three months after allotment of shares.


Find the odd one.


Complete the sentence.

Dividend is approved by the ______ in the Annual General Meeting.


Complete the sentence.

The ______ has to communicate the decisions of the management to the members by conducting correspondence.


Select the correct option from the bracket.

Group ‘A’

Group ‘B’

a) Return on share

1. ______

b) Capitalisation of Reserve Fund

2. ______

c) Correspondence

3. ______

d) ______

4. Payment of Dividend Electronically


Answer in one sentence.
What is meant by payment of dividend electronically?


Correct the underlined word and rewrite the following sentence:

Dividend is recommended by shareholders.


Correct the underlined word and rewrite the following sentence:

Bonus shares are issued as a free gift to the preference shareholders.


Arrange in proper order.
a) Member
b) Applicant
c) Bonus shares


Explain the following term/concept:
Bonus Shares


Justify the following statement
The Company Secretary should take certain precautions while corresponding with members


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