Topic:Dividend in form of stock and shares ?
AnonymousPosted on 8th January,2021 05:15 PM
As per the provisions of the companies act 2013. The dividend cannot be paid in kind i.e. only in cash. Then a how a company may declare dividend in the form of stock or shares.\r\n
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BMC Associates says Replied on 16th May,2026 10:29 AM
As per the Companies Act, 2013, dividend is generally payable only in cash and cannot be paid in kind. However, a company may issue bonus shares or stock dividend by capitalizing its free reserves, securities premium account, or capital redemption reserve. According to many chartered accountant firms in Gurgaon, bonus shares are issued to existing shareholders in proportion to their shareholding instead of paying cash dividend. A professional chartered accountant Gurgaon can guide companies regarding compliance with Section 63 of the Companies Act, 2013 for issuing bonus shares. Businesses often consult a trusted CA firm in Gurgaon or an experienced CA in Gurgaon to ensure proper legal procedures, board approval, and shareholder compliance while issuing stock dividend or bonus shares.
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