HC Deb 19 December 1957 vol 580 cc81-2W
18. Sir L. Heald

asked the Chancellor of the Exchequer why the Capital Issues Committee has refused to sanction the increase of a company's capital by the issue of bonus shares from its reserves.

Mr. Birch

In making recommendations regarding bonus issues, the Committee is guided by the following criteria: that the application should relate as a single operation to the capitalisation of true reserves and is one which will benefit the stability, credit or efficiency of the undertaking; that it does not take a form which will enable tax liabilities to be reduced, and that it is in the public interest having regard to the general directions of the Committee.