Day: January 1, 2022

The amounts due from shareholders in respect of calls in arrears should be verified by reference to the Share register. If any calls are due from Directors, they should be shown separately in the balance sheet. Often the Articles provide Read More …

A company, if permitted by the articles, may accept from members, either the whole or part of the amount remaining unpaid on any shares held by him as calls in advance; but the amount so received cannot be treated as Read More …

The Companies (Amendment) Act, 1999 contains elaborate provisions enabling a company to buy-back its own securities. The word security here includes employee stock option, i.e., sweat equity share or any other security notified by the government. The word security includes Read More …

The Companies (Amendment) Act, 1999 recognised that in the wake of globalisation of corporate sector, the employees will have to be rewarded suitably to share in the growth of company. By insertion of section 79A, the employees may be compensated Read More …

A company can issue shares at a discount on the following conditions (Section 79) :  The issue should be authorised by an ordinary resolution of the company and sanctioned by the Central Government.  No such resolution shall be sanctioned by Read More …

Where a company has issued shares at a premium, that is, at amount in excess of the nominal value of the shares, whether for cash or otherwise, Section 78 prescribes that a sum equal to the amount of the premium Read More …

The contract, on the basis of which the shares have been allotted, should be referred to and the allotment confirmed by reference to the Minutes of the Board of Directors. It should also be verified that a copy of the Read More …

Usually, there are three stages in the issue of shares for cash, viz. :  Receipt of applications for shares along with application money;  Allotment of shares and receipt of allotment; and  Making calls and receipt of call money. The programme Read More …

Authorised capital – The authorised capital may be verified with reference to the amount shown in the Memorandum of Associations. Previous year audited balance sheet may also be seen. Issued capital – Verify the amount of issued capital with reference Read More …

Almost the first function of a company is to raise capital. Excepting a private company, every other company issues a prospectus, which may be in the abridged form, or a Statement in lieu of Prospectus, before it proceeds to allotment, Read More …