"RESOLVED that pursuant to Article…………. of the Articles of Association of the company and subject to the consent of the members in general meeting, and in accordance with the guidelines of the Securities and Exchange Board of India, the Board do hereby recommend that a sum of Rs……… be capitalized out of general reserve and set free for distribution amongst the equity shareholders by issue of………….. equity shares of Rs. 10-/- each credited as fully paid to the equity shareholders in the proportion of………… equity share for every…………. Equity shares held by them on the record date to be decided by the Board and that such new shares, as and when issued and fully paid, shall rank pari passu with the existing equity shares.
RESOLVED further that for the purpose of giving effect to this resolution, an EXTRAORDINARY GENERAL MEETING of members of the company be convened to consider the proposed capitalization of profits and issue of bonus shares and that the secretary of the company be and is hereby authorized to issue notice of the said meeting to the shareholders as per draft thereof submitted to this meeting and initialed by the Chairman for the purpose of identification."
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