WHAT IS EQUITY SHARE CAPITAL?

INTRODUCTION Share capital is the amount that is invested by the shareholders in the company. It is a long- term source of capital in which the shareholders receive a portion of company’s ownership. For a company to have share capital it is necessary that its memorandum should state the amount and its division. Shares are... Continue Reading →

SHARE CERTIFICATE

INTRODUCTION A company issues shares in order to raise its capital from investors. The money collected from the issuance of shares is used to expand the company. Any person who purchases any number of shares of the company becomes the shareholder of the company which shows his/her interest in the company. When a person buys... Continue Reading →

WHAT IS THE NET WORTH OF A COMPANY?

INTRODUCTION A company prepares a financial statement at the end of the financial year which depicts a company’s total assets, debt and shareholders’ equity that eventually provides the financial stability of that company. When a company’s financial statement is examined, it is important to recognise the shareholder’s equity or net worth. The shareholder’s equity or... Continue Reading →

POWER OF SECURITIES AND EXCHANGE BOARD OF INDIA TO REGULATE AND ISSUE AND TRANSFER OF SECURITIES

INTRODUCTION The Securities and Exchange Board of India was established through the SEBI Act, 1992. It is a regulatory body for the capital and security market. The main function of SEBI is to protect the interests of the investors in the security market and also to promote the development of the security market. SEBI was... Continue Reading →

CORPORATE SOCIAL RESPONSIBILITY

INTRODUCTION The Companies Act, 2013 introduced Section 135 and Schedule VII which makes it the first country in the world to mandate corporate social responsibility (CSR) spending along with a framework to identify potential CSR activities. The activities which can be performed by the company to achieve its CSR obligations includes eradicating hunger and poverty,... Continue Reading →

WHO IS AN INTERESTED DIRECTOR?

INRODUCTION The directors of the company are the key managerial persons. They are professional men hired by the company to direct its affairs[1]. The directors are sometimes described as agents, trustees or managing partners of the company who work for the benefit of the company as well as its shareholders. Since the success of the... Continue Reading →

JURISDICTION OF CIVIL COURTS IN COMPANY LAW MATTERS

INTRODUCTION Civil courts have jurisdiction to try all suits of a civil nature except those suits of which the cognizance is either expressly or impliedly barred. In India the functioning of Civil Courts is guided by the Code of Civil Procedure, 1908. Civil courts have a jurisdiction over company law matters but after the National... Continue Reading →

GLOBAL DEPOSITORY RECEIPTS

INTRODUCTION Depository receipt is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange. Stock exchange is a marketplace where financial instruments like shares, commodities and bonds are traded. The main purpose of stock exchange is to accept listed securities as collateral and extend credit facilities... Continue Reading →

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