Singapore legislation
Clause 73
Clause 73
Bonus certificates and bonus shares
(1)
A society may distribute a part of its net surplus among its members in the form of bonus certificates or bonus shares.
(2)
In the case of bonus certificates, the members holding such certificates shall only be entitled to claim payment out of the society’s funds after five years from the date when the bonus certificate was issued. No interest or dividend shall be paid on such bonus certificates.
(3)
In the case of bonus shares, shares shall be issued to members which cannot be withdrawn or transferred unless the shares have been held by the member for more than ten years or unless the holder of bonus shares ceases to be a member.