30 days.
The amount of securities offered should
shares.
If a company does not receive minimum
subscription of 90% of the issue then entire
subscription will be refunded within 42 days.
If a company receives over subscription of
right issue then the excess amount will be
refunded to the respective applicants.
If a company delay the refund of over
subscription for more then 8 days after the
period of 42 days then it will be liable to pay
interest @ 15% p.a.
Partly paid up shares must be made fully paid
up.
BONUS ISSUE
The term ‘bonus’ in relation to share
capital refers to an extra dividend to the
shareholders from surplus profits. When a
company has accumulated profits which
are in excess of its need then the excess
amount can be distributed by way of
bonus share among existing shareholders.
MODES OF USING PROFITS