Section 77A[i] of the Companies Act provides for the power of a company to purchase its own securities. A small section for reference has been posted below: (1) Notwithstanding anything contained in this Act, but subject to the provisions of sub-section (2) of this section and section 77B, a company may purchase its own shares…
Equity in a company is represented through shares. There are businesses that see shares as a financial asset that allows for the equitable distribution of any declared dividends from any remaining profits. Owners of dividend-free stocks receive no share of the company’s earnings. They expect the stock price to rise along with the company’s profits,…
‘Share certificate’ is a document issued by a company, which serves as evidence that the person whose name is on the certificate is owner of shares in the company. The Companies Act, 2013 mandates companies to issue such share certificates after the company’s incorporations. These are thus, very important documents which serve as primary evidence…
The term equity shares which is more commonly to as a ordinary share refers to a form of fractional ownership in which each member assumes the full extent of an enterprise’s entrepreneurial obligation. The power to vote is available to these shareholders in any company. The Right to vote at the company’s annual general meeting…
In response to rising consumer demand for a diverse range of products and services across a variety of commodity categories, as well as rapid expansions in both competition and globalisation, countless businesses have sprouted up over the years to meet these demands and explore new avenues of meeting and improving upon these needs. Again, this…
Introduction A Memorandum or a Memorandum of Association (MoA) serves as the company’s charter. It is a legal document created during a company’s establishment and registration procedure that outlines the goals for the organisation’s formation, its connection with shareholders, and how the two will work together. The company may carry out only the activities listed…
A share certificate is a piece of paper that certifies the holder’s ownership of shares in a firm for the amount of shares listed on the certificate. It can also be used as a receipt for the acquisition and ownership of shares of a firm. The certificate attests the shareholder’s registered ownership of shares as…
INTRODUCTION In India, the law governing the companies is the Companies Act 2013, its previous version was an act of 1956. Section 2(20) of the act defines a company as “a company incorporated under this act or under any previous company law”[1]. The above definition does not give a meaning of the words company hence…
A creditor is someone who loans some credit to people, companies, other entities and so on, in the form of money, goods and services, credit facilities, and so on. The person the creditor loans this credit to is called the debtor. The debtor is responsible for returning the credit back to the creditor, with some…
A Managing Director plays a crucial role in the day-to-day functioning of a company. She/ he is responsible for the growth and progress of the Company, and the position is so important that, as per Section 2(51), a managing director is “Key Managerial Personnel” (KMP) placed along with a Chief Executive officer and a Chief…
