Template documents for Bonus Shares

Issuing Bonus Shares

A bonus issue of shares, also known as a capitalisation or scrip issue is an issue of new shares to existing shareholders in the same proportion as their existing shareholding. Instead of paying out the company’s profit as dividends, the money is used to pay for additional shares given to each shareholder.

The Bonus Shares Sub-folder contains a guidance note and several supporting documents.

Our guidance note is a practical guide to bonus shares and takes the reader through what bonus shares are, why they are issued and the procedure for issuing them.

The supporting documents include board minutes and a shareholders’ resolution. Two board minutes are included, one for the directors’ to declare and resolve to issue bonus shares without the need to seek shareholder approval and a second (more common) set where shareholder approval is sought. The shareholders’ ordinary resolution resolves to approve the issue of bonus shares by the members.

We have not considered any potential tax or accounting implications that may be relevant. Independent legal advice should be considered when undertaking these types of transactions.

Bonus Shares are part of the Corporate folder. Access all Corporate documents for £35+VAT.

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