Introduction Auditing Auditing means checking financial records, book keeping and books of accounts with applicable laws. A Chartered accountant who is in practice carries out the tax audit which checks the accuracy of financial statements. This happens in all the companies at the end of the financial year. The last date which is considered each…
Venture capital funds are pooled investment funds that manage the money of investors who seek private equity stakes in start-ups and small- to medium-sized enterprises with strong growth potential. These investments are generally characterized as very high-risk/high-return opportunities. In the past, venture capital (VC) investments were only accessible to professional venture capitalists, but now accredited investors have a greater…
Dividend policy means policies related to the distribution of the dividend to the shareholders. The share of a company’s after-tax earnings paid to its owners on the basis of the number of shares owned by them that is after payment of the taxes the surplus amount is distributed among the shareholders as per their shareholding…
Companies are still looking for sources of capital to expand their businesses. Funding, sometimes referred to as lending, is an act of adding money to the funding of a policy, initiative or need. The various sources of financing available to a company that is also interested to go public are: Retained Earnings: After making income,…
The Articles of association is the document which defines the purpose for which the company is formed. The Articles of Association defines the rules and regulations for the internal management. The Articles of association forms the company’s constitution along with the memorandum of association. The Articles of association cannot go beyond the powers which are…
Introduction When a company is incorporated, it is known to be separate legal entity. This entity consists of its members, board of directors and other employees. The company incorporates various aspects such as transferable shares, capacity to sue etc. The other members such as shareholders are distinct in nature and the differentiation between the entity…
Introduction Section 2(62) defines a one person company (OPC) under the Companies Act, 2013 which has only one person as its members. The one person company has only one shareholder which is considered to be a single member of the company. Now the question arises when do such companies are created and that too with…
The merger control regime in India has completed 10 years of its enforcement. While as compared to the decades of enforcement by Anti-Trust Agencies in other jurisdictions this might appear nascent, for the Competition Commission of India (CCI) and its stakeholders this is a milestone to commemorate in large part thanks to all that has…
The summary procedure of the winding up of a company is provided under Section 361 of the Companies Act 2013. The proceedings of the liquidation are carried out by an official liquidator which is appointed by the central government. This summary procedure provides the method for winding up other than winding up in a situation…
A share is a unit of ownership which represents an equal proportion in the company’s capital. A share gives equal claim on profits and losses of the company. A share represents the ownership in the company. Shares are of two types, mainly, preference shares and equity shares. When a person buys any shares in a…
