Abridged Prospectus

The securities of a corporation are described in a document called a prospectus, which is required by law before it may be sold to the public. In the prospectus, investors may learn about the business and why these securities are being sold.[i] . A prospectus is a document that invites the general public to buy... Continue Reading →

Variation of Shareholder’s Rights

The rights associated with a company's share capital vary depending on the type of share. According to Section 48[i] of the Companies Act, 2013, the rights associated with one class of shares of the business can be changed from the rights associated with the other class of shares with the written approval of the shareholders.... Continue Reading →

Global Depository Receipt (GDR)

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... Continue Reading →

Power of Company to Purchase its own security

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... Continue Reading →

Nature of Shares and Debentures

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,... Continue Reading →

Companies (Winding up) rules,2020 and its impact on NCLAT

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... Continue Reading →

Share Certificate

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... Continue Reading →

Jurisdiction of Civil Courts in Company Law Matters

The conclusion of a single lawsuit can have far-reaching consequences for a business or conglomerate of businesses, potentially damaging the interests of the company's founders, top executives, investors, and other key constituents. Lawmakers have been cognizant of the fact that speed is of the utmost essential in arbitrating corporate issues because even a single dispute... Continue Reading →

What is Company Law?

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... Continue Reading →

Rights of Minority Shareholders

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... Continue Reading →

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