Securities to be dealt with in Stock Exchanges

Introduction Securities are money-raising financial instruments. The main purpose of the securities markets is to facilitate the transfer of capital from those who possess it to those who need it. The securities market aids in the movement of resources from those who have idle resources to those who require them for productive purposes. e.g., a stock,... Continue Reading →

Jurisdiction of Civil Courts in Company Law Matters

Introduction Civil courts have the authority to try every suit which is of civil nature excluding those suits the cognizance of which is either impliedly or expressly barred. The Code of Civil Procedure, 1908 guides the working of the Civil Courts in India. Civil courts have jurisdiction in the  matters of company law but then... Continue Reading →


INTRODUCTION To start with introduction we will first know about some keywords and their explanation and differences. CATEGORIES OF SHARE CAPITAL:- 1)Called up Capital:-Called up Capital is the part of issued capital which has been called by the company for subscription. Thus, the amount of share capital which the shareholders are in an obligation to... Continue Reading →

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

Introduction Any company’s dissolution is the ending step of its life. Company’s dissolution is the procedure by which the corporation is finished, or in other words the method by which company’s presence ends and it is lastly dissolved. A company may be wound up either by a National Company Law Tribunal or by voluntarily termination,... Continue Reading →

Decriminalisation of compoundable company law offences

Introduction Company law lays the basis of commercial guidelines by managing entry of corporate beings into the marketplace, regulating their procedures, carrying out accountability to their shareholders and passing corporate governance rules. There was a noteworthy change in the Indian corporate governance context in the previous few years. The Companies Act 2013, and numerous reforms... Continue Reading →


A share certificate is a written document issued by a company to act as legal proof of ownership of the number of shares as specified in the certificate. It can also act as a receipt towards the purchase and ownership of shares of a company. In simple words, it certifies the shareholder with registered ownership... Continue Reading →


The directors are the professional men of the company who are hired to direct the affairs of the company. They are the officers of a company and not a servant. In the case of Moriarty v. Regent’s Garage Co, it was held that a director is not a servant of the company, but a controller of the... Continue Reading →


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 →

what is net worth of a company?

Net worth of Company This article seeks to elucidate the concept of difference between Theft and Extortion Introduction Do you frequently hear people use this phrase? especially when notable figures and their financial worth are discussed in newspapers, business magazines, and finance journals! This quick guide will assist you if you want to find out... Continue Reading →

what is Abridged Prospectus

ABRIDGED PROSPECTUS This article seeks to elucidate the concept of Abridged Prospectus. INTRODUCTION: Prior to investing in a security, it is essential to gather thorough information on it. Additionally, it concerns investors' access to comprehensive information about a securities offering. A prospectus is quite helpful in this regard. A prospectus is a document that covers... Continue Reading →

Different types of Share Capital

The term "share capital" refers to the money that a corporation raises from investors by issuing shares to them.  Share capital is made up of money raised through the issuance of shares for cash or non-monetary considerations. Share capital is needed by businesses in order to finance their operations.  The issue of additional shares will raise the company's share capital. Equity share capital and preference share capital are the two types of share capital.  Preference share capital is acquired through the issuance of preference shares, whereas equity share capital is obtained through the raising of funds from investors. Authorized, issued, subscribed, called-up, and paid-up share capital are several types of share capital Authorized Capital: The amount of share capital for which a corporation is permitted to issue its Memorandum of Association is known as authorised capital. The amount of capital that is specified in the Memorandum of Association is the maximum that the firm may raise. It isoften referred to as nominal or registered capital. Issued Capital: This is the component of the authorised capital that is typically made available to the public for subscription and consists of the shares that have been allotted to the merchants and endorsers on the enterprise's memorandum. Subscribed Capital: Investors in the company subscribe for a portion of the issued capital that is referred to as subscribed capital. It represents the actual sum of money that the investors have borrowed. Called up Capital: Called up capital refers to the unpaid share capital that the stockholders still owe. The corporation is requesting payment of that particular portion of the share capital PaidUp:The part of calledup capital that has been paid for by the shareholder is known as paidup capital.The shareholder is not required to pay the amount that the corporation has demanded.The corporation may accept from the shareholder half of the called-up capital, also known as reserved capital. CONCLUSION Companies issue shares to raise money by diluting the ownership stake of the original stockholders.  The cost of a stock may occasionally change. As a result, it is best to make informed stock market investments.  In addition, the contrast between shares and shares capital confuses a lot of individuals.  While a shareholder's share is the portion of the money given to the company, a corporation's share capital is the money raised through the sale of stock to investors. BIBLIOGRAPHY Aishwarya Says: Law students often face problems, which they cannot share with their friends and families. We have started a column on our website Student’s Corner. In this column we are talking to several law... Continue Reading →

What is Shelf Prospectus?

Shelf Prospectus This article seeks to elucidate the concept of shelf Prospectus. Introduction Any company that you are familiar with and whose products you use will eventually provide new offerings, you can be sure of that. In most businesses, it is an inevitable kind of business expansion, and this is seen as being essential to... Continue Reading →

what is Company Law?

Company Law This article seeks to elucidate the concept of Company Law. What is Company Law? The set of laws, rules, regulations, and procedures that regulate the establishment and functioning of companies is known as company law. It is the body of legislation that governs the establishment of business-related legal entities. The laws have an... Continue Reading →


SECTION 301 OF COMPANIES ACT 2013: ARREST OF PERSON TRYING TO LEAVE INDIA OR ABSCOND The rules of Section 301 go into effect on December 15th, 2016. You can refer to the S.O. 3677(E) notification, which was released on 7/12/2016. You will discover in-depth information about the provisions of Section 301 of the 2013 Companies... Continue Reading →


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 →


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 →


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 →


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 →

Decriminаlisаtiоn оf cоmpоundаble cоmpаny lаw оffences

Intrоductiоn CОVID-19 The pаndemic hаs hаd а significаnt impаct оn the wоrking pаtterns оf businesses. Cоmpаnies аre hаving а difficult time meeting their regulаtоry, prоcedurаl, аnd technicаl оbligаtiоns under the Cоmpаnies Аct оf 2013. (the Аct). The Gоvernment оf Indiа is lаunching vаriоus relief pаckаges tо аssist businesses in eаsing their оperаtiоns during the current... Continue Reading →


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 →

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