84Restrictions on bonus shares

84 Restrictions 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.