Companies Act Section 378ZJ — Issue of bonus Shares

CHAPTER XXI

Commercial / Corporate

Summary

A Producer Company may issue bonus shares, but only if the Board recommends it and the general meeting passes a resolution to approve it. These bonus shares are created by capitalising, or converting, amounts from the general reserves that are mentioned in section 378Z-I. The new shares are given to Members in proportion to the shares they already hold on the date the bonus shares are issued.

Official Text

Any Producer Company may, upon recommendation of the Board and passing of resolution in the general meeting, issue bonus shares by capitalisation of amounts from general reserves referred to in section 378Z-I in proportion to the shares held by the Members on the date of the issue of such shares. PART VII LOANS TO MEMBERS AND INVESTMENTS