In this article we will discuss about the Sweat Equity Shares and Employee’s Stock Option in a Joint Stock Company. Sweat Equity Shares: The Companies (Amendment) Act, 1999 introduced through section 79-A a new type of equity shares called 'Sweat Equity Shares'. The expression 'sweat equity shares' means equity shares issued at a discount or for consideration other than cash [...]
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: [...]
In this article we will discuss about the Forfeiture and Reissue of Shares:- 1. Introduction to Forfeiture and Reissue of Shares 2. Journal Entries on Forfeiture (or Surrender) and Reissue of Shares 3. Solved Illustrations. Introduction to Forfeiture and Reissue of Shares: If a shareholder fails to pay allotment money or a call or a part thereof by the last [...]