A share represents the amount of shareholding a person has in the company. Shares are the divided capital of the company.[i] This is a form of ownership in the company and is offered by the company to raise capital for itself. The person who buys these shares when they are released by the company is…
The golden guideline for minimising losses in financial dealings is to have a portfolio as varied as possible. When it comes to diversifying their holdings, investors have long sought out more practical solutions. While the need for diversity may motivate an investor to explore opportunities in overseas markets, they may be put off from doing…
Section 61 Limited companies’ ability to change their share capital (1) A limited company with a share capital may change its memorandum in its general meeting to—if permitted by its articles. (a) Raise the amount of its authorized share capital that it deems necessary; (b) Combine and divide all or a portion of its share…
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…
What is a Gift Deed? A gift deed is a legal document that can be used to transfer immovable property in accordance with section 122 of the Transfer of Property Act, of 1882. A gift deed includes information about the property, the transferrer, and the recipient, similar to what a sale deed does. However, it permits…
A builder-buyer agreement is a document which specifies the modalities, conditions and clauses between a builder and a homebuyer. The builder-buyer agreement contains clauses referring to the property in question, delivery information, and terms relating to default and late project delivery, among other things. At one point, delayed real estate projects affected the Indian real…
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…
