4.9 Issue of Bonus Shares

Bonus shares — shares issued free to existing shareholders out of accumulated profits or reserves (the capitalisation of profits): no new money comes — the reserves become capital, and each member's proportionate slice is preserved. The discipline: only out of the distributable pools (the free reserves, the premium account — never the capital-reserve cores); the board's recommendation and the general meeting's approval; SEBON's rules for the listed (the bonus issue's market discipline); the proportionality's preservation (a bonus is a slice-redivision, not value-creation — the investor-education point).