Archive | Company Management

Management of Joint Stock Companies

General: The internal management of companies is carried on according to the articles of association. The articles define the relationship between members and between members and the company. On this basis, members are bound to each other but neither the company nor the members are bound to outsiders. Articles may supplement the terms of a […]

Underwriting of a Company

Meaning of Underwriting: Underwriting in the context of a company means undertaking a responsibility or giving a guarantee that the shares or debentures offered to the public will be subscribed for. There are firms which undertake this sort of work and are very useful to companies which want to raise funds by the issue of […]

Difference between a Private Company and Public Company

The upcoming discussion will update you about the difference between Private Company and Public Company. (i) Minimum number: The minimum number of persons required to form a private company is two whereas in the case of a public company, it is seven. (ii) Maximum number: The maximum number of shareholders in the case of a […]

Meeting of Shareholders

The following points highlight the five main criteria required during meeting of shareholders. The criteria are: 1. Quorum 2. Voting 3. Resolutions 4. Copies to be Filed with the Registrar 5. Minutes Books. Meeting of Shareholders: Criteria # 1. Quorum: The quorum for the general meetings of the company is five persons personally present for […]

General Shareholders Meeting of a Company

The following points highlight the top three kinds of general shareholders meeting of a company. The kinds are: 1. Statutory Meeting 2. Annual General Meeting 3. Extraordinary General Meeting. Shareholders Meeting: Kind # 1. Statutory Meeting: Every public company limited by shares, and limited by guarantee and having a share capital, must hold a general […]

5 Main Criteria Required for Floatation of Companies

The following points highlight the five main criteria required for floatation of companies. The criteria are: 1. Documents 2. Prospectus 3. Deposits 4. Minimum Subscription 5. Certificate of Commencement of Business 6. Returns as to Allotment. Floatation of Companies: Criteria # 1. Documents: It is usually a “promoter” who thinks of the idea of a […]

Shares Issued by a Joint Stock Company

The following points highlight the top two classes of shares issued by a joint stock company. The types are: 1. Preference Shares 2. Equity Shares. Joint Stock Company: Type # 1. Preference Shares: Preference shares are those which carry; (i) A preferential right as to the payment of dividend during the lifetime of the company, […]

Redemption of Preference Shares in a Joint Stock Company

In this article we will discuss about the Redemption of Preference Shares in a Joint Stock Company. Section 80 of the Companies Act allows a company, if authorised by its Articles of Association, to issue preference shares which can be redeemed by the company according to the terms of the issue; but the following legal […]

Buy-back of Shares (With Illustration) | Accounting

The below mentioned article provides a study note on the Buy-back of Shares:- 1. Conditions for Buy-back of Shares 2. Restrictions on Buy-back of Shares 3. Contents of Notice of Meeting 4. Time-limit 5. Sources 6. Picking Shares 7. Declaration of Solvency 8. Method of Fixation of Price 9. Deposit in an Escrow Account 10. […]

Entries in the Books of Purchasing Company

The below mentioned article provides an overview on the Entries in the Books of Purchasing Company. Purchase of Business: A company may start an entirely new business or it may start with buying an existing business, either that of a partnership or of a limited company. Frequently, later in its life a company buys businesses. […]

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