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 special contract between the 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, and (ii) A preferential right [...]
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 restrictions apply to such redemption: [...]