Related Commentary  

1051(1)  In sections 1049 and 1050 “bonus share capital” means–

(a)share capital issued otherwise than wholly for new consideration, or

(b)the part (if there is such a part) of any share capital so issued that is not properly referable to new consideration.

1051(2)  For the purposes of section 1049(1)(a) share capital is issued by a company in lieu of a cash dividend if–

(a)it is issued in consequence of the exercise by a person of an option conferred on the person, and

(b)that option is an option to receive, in respect of shares in the company, either a dividend in cash or additional share capital.

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