Question:
A company may issue fully paid bonus shares to its shareholders and use the following funds:
A company may issue fully paid bonus shares to its shareholders and use the following funds:
Updated On: Dec 14, 2024
- its free reserves
- the securities premium account
- the capital redemption reserve account
- All of the above
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The Correct Option is D
Solution and Explanation
A company may issue fully paid bonus shares using its free reserves, the securities premium account, or the capital redemption reserve account. All these sources are allowed for issuing bonus shares.
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