Archive | Capital

Steps for Reconstruction Scheme | Capital

The following steps are taken into consideration for drafting a scheme, in brief:  1. Losses to be written off are to be determined by adding accumulated losses, fictitious assets, overvaluation of assets, under-provision of liabilities, preliminary expenses etc. The total amount of losses to be written off is thus determined and is reduced from the […]

Schemes of Reconstruction of Share Capital

The need for reconstruction arises when a company has accumulated losses or when a company finds itself overcapitalized which means either that the value placed on assets is too much as compared to their earning capacity or that the profits as a whole are insufficient to pay a proper dividend. In the previous section, the […]

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