Question

3. How would you recommend Pedro get ready for this meeting with the venture capitalist?

Answer 1

Answer:

1 The bonus issue shall be made out of free reserves built out of the genuine profits or share premium collected in cash only.

2. The declaration of bonus issue, in lieu of dividend, is not made.

3. The bonus issue is not made unless the partly-paid shares, if any existing, are made fully paid-up.