Board resolution, recommending a bonus issue

Extract from the minutes of the meeting of the Board of Directors of [Company Name] Private Limited held at [Place of the board meeting] on [Date of the board meeting] at [Time of the board meeting]

RECOMMENDATION OF A BONUS ISSUE OF EQUITY SHARES BY CAPITALISATION OF RESERVES

The Chairman informed the Board that the Company has accumulated reserves which are available for capitalisation and that it is proposed to issue bonus shares to the equity shareholders of the Company by way of capitalisation of such reserves, in the ratio of [Bonus shares offered (number)] new fully paid-up equity share for every [For every existing shares held (number)] existing fully paid-up equity share held.