S Ltd acquired 10% paid-up share capital of H Ltd on 15th March 2017. H Ltd acquired

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Question:

S Ltd acquired 10% paid-up share capital of H Ltd on 15th March 2017. H Ltd acquired 55% paid-up share capital of S Ltd on 10th March 2018. H Ltd. on 25th September 2020 decided to issue bonus shares in the ratio of 1:1 to the existing shareholders. Accordingly, bonus shares were allotted to S Ltd. Examine under the provisions of the Companies Act, 2013 and decide
(i) The validity of holding of shares by S Ltd. in H Ltd.
(ii) Allotment of Bonus shares by H Ltd. to S Ltd.