Declaration as to shares held in trust ‑ Whether expression “trust money invested in shares or debentures of company”, occurring in sub‑section (4), as it stood before the Amendment Act, 1965, also covers shares obtained as gift or on allotment of bonus shares - Companies Law - No. 8/4(153B)/64‑PR,

Circular : No. 8/4(153B)/64 ‑ PR, dated 22 ‑ 2 ‑ 1964. Subject:- Declaration as to shares held in trust ‑ Whether expression trust money invested in shares or debentures of company , occurring in sub ‑ section (4), as it stood before the Amendment Act, 1965, also covers shares obtained as gift or on allotment of bonus shares The expression trust money invested in shares or debentures of a company appearing in section 153B(4) does not refer merely to the actual money with which shares or debentures are acquired by a trust either by purchase or by subscription but also covers the value of shares or debentures obtained by a trust as gift from any person or on allotment of bonus shares issued by a company. Such shares and debentures are also, therefore, to be taken into account for the purpose of clause (b) of section 153B(4). As regards the valuation of the investment of the trust money in shares or debentures in a company for the purpose contemplated in clause (b), it may be stated that ordinarily such valuation should be based on the cost of the shares or debentures to the trust. Where, however, these are obtained as gift or on a bonus issue and such shares or debentures are quoted on a stock exchange, the value at which they could have been obtained by the trust from the market at the time of the gift or the bonus issue should be taken as the basis for determining the valuation of the investment. But where the shares of a company are not quoted on any stock exchange and if the shares of that company are obtained as gift or on a bonus issue, then the face value of the shares may be adopted to determine the valuation of the investment for the purpose of clause (b).