Answer in Brief
Write a letter to a shareholder regarding issue of bonus shares.
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Solution
NOTE: -
Bonus shares
Bonus shares are issued free of cost to the existing equity shareholders of a company. Bonus shares are issued by capitalization of general reserves of the company. Maximum two bonus issues are permitted in a block of five years. The bonus shares are issued to existing equity shareholders in a proportion to their shareholdings.
Concept: Issue of Bonus Shares
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