Restrictions on bonus shares
148 Restrictions on bonus shares
Bonus shares issued under section 147 may be issued in accordance with the rules of the co‑operative, subject to the following restrictions —
each issue must have been approved by a special resolution of the co‑operative;
they are to be issued as fully paid up shares with no payment required to be made by a member of the co‑operative to whom they are issued;
they are to be issued only for shares of the same class of shares that are fully paid up as at the date of issue of the bonus shares;
the total nominal value of bonus shares issued by a co‑operative in any one year cannot be more than 20%, or another percentage prescribed by the regulations, of the nominal value of the issued share capital of the co‑operative immediately before the date of issue of the bonus shares.
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