[Solved] A company can issue bonus shares if authorized by

A company can issue bonus shares if authorized by

a) Memorandum of Association

b) Articles of Association

c) Companies Act 2013

d) None of these

Answer: (b) A company can issue bonus shares if authorized by Articles of Association. Verify that the authorized capital is sufficient for the issue of Bonus shares. If it is not, then the Memorandum of Association has to be altered to increase the authorized capital. The issue must be authorized at the General Meeting by shareholders.

More MCQ and Answers on Auditing

  1. A vacancy caused by resignation of the auditor is filled by
  2. A company auditor can be removed before expiry of his term by
  3. Remuneration of a company auditor is fixed by the
  4. A company auditor, in general has to submit his report to
  5. An auditor of Government company has to submit his report to the
  6. Internal auditor has to submit report to
  7. Auditor should be dutiful like a
  8. Auditor, in general is an
  9. Which of the following percentage of nominal amount of shares should be received with application
  10. While checking allotment, auditor should see that amount

Comments