84Restrictions on bonus shares

84 Restrictions on bonus shares

Bonus shares may be issued under section 83 subject to the following restrictions:

(a) each issue must have been approved by a special resolution of the co-operative;

(b) they are to be issued as fully paid-up shares with no payment required to be made by a member of the co-operative to whom they are issued;

(c) they are to be issued only for shares of the same class of shares that are fully paid-up as at the date of issue of the bonus shares;

(d) the total nominal value of bonus shares issued by a co-operative in any period of 12 months must not be more than 20%, or another percentage prescribed under the National Regulations, of the nominal value of the issued share capital of the co-operative immediately before the date of issue of the bonus shares.