The directors are the professional men of the company who are hired to direct the affairs of the company. They are the officers of a company and not a servant. In the case of Moriarty v. Regent’s Garage Co, it was held that a director is not a servant of the company, but a controller of the…
INTRODUCTION Share capital is the amount that is invested by the shareholders in the company. It is a long- term source of capital in which the shareholders receive a portion of company’s ownership. For a company to have share capital it is necessary that its memorandum should state the amount and its division. Shares are…
Net worth of Company This article seeks to elucidate the concept of difference between Theft and Extortion Introduction Do you frequently hear people use this phrase? especially when notable figures and their financial worth are discussed in newspapers, business magazines, and finance journals! This quick guide will assist you if you want to find out…
ABRIDGED PROSPECTUS This article seeks to elucidate the concept of Abridged Prospectus. INTRODUCTION: Prior to investing in a security, it is essential to gather thorough information on it. Additionally, it concerns investors’ access to comprehensive information about a securities offering. A prospectus is quite helpful in this regard. A prospectus is a document that covers…
The term “share capital” refers to the money that a corporation raises from investors by issuing shares to them. Share capital is made up of money raised through the issuance of shares for cash or non-monetary considerations. Share capital is needed by businesses in order to finance their operations. The issue of additional shares will raise the company’s share capital. Equity share capital and preference share capital are the two types of share capital. Preference share capital is acquired through the issuance of preference shares, whereas equity share capital is obtained through the raising of funds from investors. Authorized, issued, subscribed, called-up, and paid-up share capital are several types of share capital CONCLUSION Companies issue shares to raise money by diluting the ownership stake of the original stockholders. The cost of a stock may occasionally change. As a result, it is best to make informed stock market investments. In addition, the contrast between shares and shares capital confuses a lot of individuals. While a shareholder’s share is the portion of the money given to the company, a corporation’s share capital is the money raised through the sale of stock to investors. BIBLIOGRAPHY Aishwarya Says: Law students often face problems, which they cannot share with their friends and families. We have started a column on our website Student’s Corner. In this column we are talking to several law students about the challenges that they face. Students…
Shelf Prospectus This article seeks to elucidate the concept of shelf Prospectus. Introduction Any company that you are familiar with and whose products you use will eventually provide new offerings, you can be sure of that. In most businesses, it is an inevitable kind of business expansion, and this is seen as being essential to…
Company Law This article seeks to elucidate the concept of Company Law. What is Company Law? The set of laws, rules, regulations, and procedures that regulate the establishment and functioning of companies is known as company law. It is the body of legislation that governs the establishment of business-related legal entities. The laws have an…
SECTION 301 OF COMPANIES ACT 2013: ARREST OF PERSON TRYING TO LEAVE INDIA OR ABSCOND The rules of Section 301 go into effect on December 15th, 2016. You can refer to the S.O. 3677(E) notification, which was released on 7/12/2016. You will discover in-depth information about the provisions of Section 301 of the 2013 Companies…
INTRODUCTION A company issues shares in order to raise its capital from investors. The money collected from the issuance of shares is used to expand the company. Any person who purchases any number of shares of the company becomes the shareholder of the company which shows his/her interest in the company. When a person buys…
INTRODUCTION A company prepares a financial statement at the end of the financial year which depicts a company’s total assets, debt and shareholders’ equity that eventually provides the financial stability of that company. When a company’s financial statement is examined, it is important to recognise the shareholder’s equity or net worth. The shareholder’s equity or…
