The correct answer is C. Bonus Shares mean shares issued to existing equity shareholders without any consideration.
Bonus shares are a type of share that is issued to existing shareholders without any additional cost. They are usually issued in proportion to the number of shares that a shareholder already owns. Bonus shares can be used to increase the company’s share capital, to reward shareholders, or to make the company’s shares more attractive to investors.
A. Workers in lieu of their share of profit is incorrect because bonus shares are not issued to workers. They are issued to shareholders.
B. Preference shareholders in lieu of dividend is incorrect because bonus shares are not issued to preference shareholders. They are issued to ordinary shareholders.
D. Debenture-holders in lieu of interest is incorrect because bonus shares are not issued to debenture-holders. They are issued to shareholders.