157 Bonus shares

A company may seek to reward its shareholders for their loyalty by giving them extra shares in the company. Consequently, it may decide, instead of distributing profits by way of dividend, to capitalise those profits and issue them with bonus shares1. A company may issue bonus shares provided that its articles of association allow this2. Bonus shares are not specifically regulated by the Companies Acts, but the usual rules relating to payment for shares on allotment must be complied with3. A company may issue bonus shares fully or partly paid up4.

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