Suyog S Kabra
1. Check whether it is authorized by Articles
2. Whether it has, on the recommendation of Board, been authorized in general meeting of the company
3. Whether the company has defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it.
4. Whether it had defaulted in respect of payment of statutory dues of employees, such as, contribution to provident fund, gratuity and bonus
5. Whether the partly paid up shares, if any outstanding on the date of allotment, have been made fully paid-up
6. Whether bonus is declared only out of
a. Free Reserves
b. Securities Premium Account
c. Capital Redemption Reserve Account
And not out of revaluation reserve created out of revaluation of assets
7. Ensure that company which has once announced the decision of its Board recommending a bonus issue does not subsequently withdraw the same
8. Check whether Return of Allotment is filed with the registrar in Form No. PAS 3
Indicative list of documents to be checked
- Articles of Association
- Minutes of Board meeting
- Minutes of General Meeting
- Register of Fixed Deposits
- Auditor’s Report
- PAS-3, MGT-14
(Suyog S Kabra is partner with White Collar Legal LLP and can be reached at whitecollarlegal@gmail.com)
