In India, the first company legislation dates back to 1850, called the Joint Stock Companies Act, adapted from the English Companies Act, of 1844. After multiple amendments and additions, the Companies Act, of 1913 was passed by the Parliament. This was further amended and the Companies Act, of 1956 came into force, based on the…
The financial year was not defined under the Companies Act, of 1956. However, the Companies Act, 2013 (“the act”) amended the same and added the definition of the financial year to avoid any differing financial years. The financial year is important because it decides for which period a set of records, is to be analyzed,…
The Companies Act,2013 is a broad detailed legislation which basically governs the incorporation, dissolution, and functioning of the company. Mainly, it focuses on the pellucidity by way of detailed disclosures. Financial statement, Board’s report,etc has been mentioned under section 134 of Chapter IX of Companies Act,2013. Financial reporting is necessary for companies as it provides…
Meaning of “call on shares” The term call refers to “an order or demand for payment”. A demand made by a company, under the terms of its articles of incorporation or the terms of the issuance of the share, asking its shareholders to pay up the entire or partial nominal value of their shares is…
SHARES: Kinds of share capital [S. 43] Capital must be divided into shares of a fixed amount. All the shares may be of only one class or may be divided into two different classes of securities. For this purpose, securities means securities defined in Section 2{h), Securities Contracts (Regulation)Act, 1956 [S. 2(81)] and includes “hybrids”.…
Introduction Law exists for different segments in a society. It can be applied in a variety of sectors whether civil or corporate. In discharging the lawful duties, law also governs companies. In respect of companies, company law is applied to regulate different matters in relation to companies. The global business community has grown rapidly in…
A company is a democratic entity in which the majority of decisions are made by a vote of the shareholders. These shareholders are responsible for making crucial decisions that are important for the working of the company. Like a democracy, there exists a majority and a minority within the diversification of shareholders. Herein, a decision…
Introduction Share capital, or the amount invested in the company to enable it to conduct business, is a need for all companies limited by shares. It can be changed or enhanced under specific circumstances. A company’s share capital may also be split into smaller shares of several classes. A ‘share’ is the interest of a…
INTRODUCTION A bill of exchange is a type of paper that entitles the holder to pay a certain amount of money to the debtor named in the document. The bill of exchange is both a means of payment and an instrument for making payment. The bill of exchange is typically a paper on orders, but…
INTRODUCTION TO MINORITY SHARE HOLDERS To start with we will first know the definition of “majority and minority shareholders”.The majority shareholders in a firm or company are those members who own the most shares in the company. The word “minority shareholder” is not defined in the Company Law. However, it is commonly accepted that persons who…
