A bonus issue does not reduce those assets since the assets and liabilities side of the balance sheet remains unchanged but the capital and reserves side of the balance sheet is rearranged with a reduction in the amount of the profits or other relevant reserves and an equal increase in the amount of the paid up share capital reflecting the increase in the issued share capital.
Judges:
Lord Russell
Citations:
[1930] AC 720
Cited by:
Cited – EIC Services Ltd European Internet Capital Ltd v Phipps, Paul, Barber CA 30-Jul-2004
Whether issue of additional shares had been properly authorised . .
Lists of cited by and citing cases may be incomplete.
Company
Updated: 09 May 2022; Ref: scu.199727
