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Scrip (bonus) issues in practice

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A scrip issue will normally be put to the vote at a shareholder meeting before being put into effect. Practically, there is little a shareholder needs to worry about except to make a note of the date when the scrip issue is due to take place; otherwise the steep drop in the share price on the day in question may give them an unnecessary shock!

Normally, holders of physical share certificates will be issued with new certificates showing the new number of shares they hold, but shareholders should continue to keep the old certificate because proof of their shareholding is normally based on the old and new certificates together.

Corporate Actions - A Concise Guide

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