1. BONUS SHARES (Section63)

2.  ISSUE FULLY PAID-UP BONUS SHARES OUT OF-  Free reserves  Securities premium account  Capital redemption reserve account  CANT BE made out of Capitalizing Revaluation Reserves (created by revaluation of assets.)  The bonus shares shall NOT be issued in lieu of dividend.

3.  Bonus Issue is authorized by Articles of Association.  Recommended by the Board of Directors & approved in the general meeting of the company  Company has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it  Company has not defaulted in respect of the payment of statutory dues of the employees (e.g. contribution to provident fund, gratuity and bonus)  After making partly paid-up shares (if any, outstanding on the date of allotment) as fully paid-up  After complying with such conditions as may be prescribed.

4.  Check availability of resources for issue of Bonus shares.  Check eligibility of the company for issuing bonus shares like provision in AOA, no default in payment of dues, no partly paid up shares etc.  Check whether the authorized capital is sufficient for issue of bonus shares  Decided on the quantum of issue

5.  Convene Board Meeting to seek Board’s approval and fix the time, date and place for holding general meeting for seeking member’s approval.  Convene general meeting and seek member’s approval.  Convene Board meeting and make allotment of shares  File return of allotment with Registrar of Companies within 30 days of making allotment in FORM PAS - 3.  Issue share certificates, update registers and minutes book