Class 12 SP Letter for Issue of Bonus Shares: Format, Marking Scheme & Solved Specimen
Master the official format and scoring secrets for the Class 12 Secretarial Practice (SP) letter on the Issue of Bonus Shares tailored for the Maharashtra State Board (HSC) Commerce examination. Under Chapter 6 (Correspondence with Members), drafting a letter informing an equity shareholder about the allotment of bonus shares through the capitalisation of reserves is one of the most frequently asked questions in Question 7 (Letter Writing), carrying a direct weightage of 5 marks. Below, you will find the official board problem scenario, step-wise marking breakdown, statutory legal conditions under the Companies Act, 2013, and a textbook-accurate solved model answer.
Statutory Rule (Section 63, Companies Act 2013): Bonus shares are fully paid-up shares issued free of cost to existing equity shareholders in proportion to their shareholding. They can only be issued out of Free Reserves, Securities Premium Account, or Capital Redemption Reserve Account. Bonus shares cannot be issued in lieu of dividends.
HSC Board Examination Question Scenario
In the HSC examination, the question for this letter is typically framed as follows:
"Draft a letter to a shareholder informing him / her regarding the issue of Bonus Shares in the ratio of 1:1, in accordance with the resolution passed at the Extra-Ordinary General Meeting."
Official HSC Step-Wise Marking Breakdown (5 Marks)
Examiners evaluate secretarial correspondence strictly based on structural completeness and factual accuracy:
| Component | Required Exam Content | Marks |
|---|---|---|
| Letterhead & Layout | Company Name, Registered Address, 21-digit CIN, Phone, Email, Website, Ref. No., and Date. | 1 Mark |
| Inside Address & Subject | Shareholder Name, Address, concise Subject Line, and formal Salutation. | 1 Mark |
| Body of the Letter | Mention of EGM resolution, 1:1 bonus ratio, record date, tabular schedule of shares, and Demat credit details. | 2 Marks |
| Sign-off & Subscription | Complimentary close ("Yours faithfully"), company name, and Company Secretary signature block. | 1 Mark |
| Total Marks | Question 7 (Attempt Any 2 Letters out of 3 = 10 Marks Total) | 5 Marks |
Solved Model Answer: Letter for Issue of Bonus Shares
YASH CHEMICALS INDUSTRIES LIMITED
Registered Office: 45, MIDC Industrial Area, Andheri (East), Mumbai - 400093.
CIN: L24110MH2005PLC154879
Phone: 022 - 2836 4501
Email: secretarial@yashchemicals.com
Website: www.yashchemicals.com
Ref. No.: YCL/BONUS/SH-12/2026-27
Date: 2nd November 2026
To,
Mr. Anand R. Shah,
15, Shanti Niketan Apartments, S.V. Road,
Vile Parle (West), Mumbai - 400056.
Subject: Allotment of Bonus Shares.
Dear Sir,
I am directed by the Board of Directors to inform you that in accordance with the resolution passed at the Extra-Ordinary General Meeting (EGM) of the company held on 15th October 2026, the shareholders have unanimously approved the recommendation of the Board to capitalise a portion of the company's General Reserves by issuing fully paid-up Bonus Shares.
The Bonus Shares are allotted in the ratio of 1:1, i.e., One (1) additional fully paid Equity Share for every One (1) existing Equity Share held by the members whose names appeared on the Register of Members on the Record Date, which was fixed as 25th October 2026.
The details of the Bonus Shares allotted to you are specified in the schedule below:
| DP ID / Client ID | No. of Shares Held on Record Date | Bonus Ratio | No. of Bonus Shares Allotted | Distinctive Numbers (From - To) |
|---|---|---|---|---|
| IN300123 / 10458890 | 100 | 1:1 | 100 | 5001 - 5100 |
The company has strictly complied with all statutory regulations and guidelines laid down by the Companies Act, 2013 and SEBI for the issue of Bonus Shares. The newly issued Bonus Shares will rank pari passu with the existing equity shares of the company in all respects.
Since your shares are held in dematerialized form, the allotted bonus shares have been directly credited to your Demat account with Central Depository Services (India) Limited (CDSL). No physical share certificate will be dispatched.
Thanking you.
Yours faithfully,
For Yash Chemicals Industries Limited
(Signature)
Mr. Rajesh V. Patil
Company Secretary
Examiner's Secret: 3 Costly Mistakes to Avoid in this Letter
- Forgetting the Ratio: Always mention the bonus ratio clearly (e.g., 1:1 or 2:1) in both the second paragraph and inside the schedule table.
- Missing the Record Date: A bonus share allocation cannot occur without a statutory "Record Date." Always cite a plausible record date occurring between the EGM date and the letter date.
- Dematerialization Awareness: Modern Maharashtra Board answer keys expect a mention of direct credit to the Demat account (CDSL/NSDL) rather than enclosing physical share certificates.
Frequently Asked Questions (HSC Board Exam FAQs)
1. What is the statutory meaning of 'Capitalisation of Reserves'?
Capitalisation of reserves means converting undistributed accumulated profits or reserves into permanent share capital by issuing fully paid bonus shares to existing shareholders without charging any cash consideration.
2. Can bonus shares be issued to Preference Shareholders?
No. Under the Maharashtra Board SP syllabus and Section 63 of the Companies Act, bonus shares can only be issued to fully paid-up Equity Shareholders.
3. Which general meeting approves the issue of Bonus Shares?
The recommendation is initiated by the Board of Directors and formally approved by the shareholders in an Extra-Ordinary General Meeting (EGM) or the Annual General Meeting (AGM).