Question
Legal Studies Question on Company Law
A company may issue fully paid bonus shares to its shareholders and use the following funds:
A
its free reserves
B
the securities premium account
C
the capital redemption reserve account
D
All of the above
Answer
All of the above
Explanation
Solution
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.