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Explain the following term/concept:Bonus Shares - Secretarial Practice

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Question

Explain the following term/concept:
Bonus Shares

Short/Brief Note
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Solution

(1) Bonus issues refer to the fully paid-up shares given to its existing equity shareholders without any cost, based upon the number of shares they are own. It is given at free of cost.
(2) For this purpose, a certain proportion is decided. For instance, if a person holds 100 shares and the company declares 1:2 bonus issues, then for every 2 shares held, he gets 1 share for free of cost.

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Precautions to Be Taken by the Secretary While Corresponding with Members
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Chapter 6: Correspondence with Members - Exercises [Page 103]

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Balbharati Secretarial Practice [English] Standard 12 Maharashtra State Board
Chapter 6 Correspondence with Members
Exercises | Q 2. 2. | Page 103

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