Bonus Issue with Shareholder Approval

In the UK, bonus issues allow a company to convert part of its reserves into share capital by distributing additional shares to current shareholders proportionally. This action increases the total number of shares and can enhance the marketability of the company’s shares, without altering the shareholders’ overall value in the company.

The document typically includes details of the board meeting, such as attendees, date, and time, and records resolutions passed concerning the bonus issue. It serves as legal evidence of compliance with corporate governance practices and is essential for ensuring transparency in corporate financial activities.