State the conditions to be fulfilled for issue of bonus shares by a company.

No company shall capitalise its profits or reserves for the purpose of issuing fully paid-up bonus shares unless: it is authorised by its articles; it has, on the recommendation of the Board, been authorised in the general meeting of the company; it has not defaulted in payment of interest or principal in respect of fixed deposits or debt securities issued by it; it has not defaulted in respect of the payment of statutory dues of the employees, such as, contribution to provident fund, gratuity and bonus; the partly paid-up shares, if any outstanding on the date of allotment, are made fully paid-up; The company which has once announced the decision of its Board recommending a bonus issue, shall not subsequently withdraw the same.