Archive | Company Management

Winding Up of a Company | Accountancy

The winding-up or liquidation of a company means the termination of the legal existence of a company by stopping its business. Under the circumstances, the assets of the company are disposed of, the debts are paid-off out of the realised assets or from the contributions made by its members, and the surplus, if any, is […]

Shareholder Value Analysis (SVA) | Financial Management

Shareholder Value Analysis (SVA) is an approach to financial management developed in 1980s, which focuses on the creation of economic value for shareholders, as measured by share price performance and flow of funds. SVA is used as a way of linking management strategy and decisions to the creation of value for shareholders. The investment, business […]

Kinds of Capital Issues: 4 Kinds | Company

The following points highlight the four kinds of capital issues. The kinds are: 1. Initial Public Offering (IPO) 2. Follow on Public Offering (FPO) 3. Rights Issue (RI) 4. Preferential Issue. Kind # 1. Initial Public Offering (IPO): When an unlisted company, for the first time makes a fresh issue of securities or an offer […]

An Overview on Debt Instruments | Company

The below mentioned article provides an overview on debt instruments. Debentures: According to section 2(12) of the Companies Act, a “Debenture includes debenture stock, bonds and any other securities of a company, whether constituting a charge on the assets of the company or not”. From this definition it is not very clear what is a […]

Listing of Securities: Meaning and Advantages | Company

In this article we will discuss about the meaning and advantages of listing of securities. Meaning of Listing: Listing means admission of securities to dealings on a recognized stock exchanges of any incorporated company, Central and State Governments, quasi governmental and other financial institutions/corporations, municipalities, electricity, housing boards etc. stock exchange means any-body of individuals, […]

Float: Meaning and Types | Financial Management

In this article we will discuss about:- 1. Meaning and Sources of Float 2. Types of Float 3. Management of Float 4. Electronic Cash Management System 5. Virtual Banking. Meaning and Sources of Float: Float refers to ‘the amount of money tied up between the time a payment is initiated and cleared funds become available […]

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 […]

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 […]

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 […]

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 […]

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