Archive

Rights of existing members – Company Registration in Bangalore

Section 81 of Companies Act, 1956 Section 81 of the 1956 Act granted pre-emptive rights to existing members of the company and provided for issue of rights shares to existing shareholders. However, the section also permitted the company to issue further shares to persons other than existing shareholders provided the conditions as stated in the section were met. Section 81 of the 1956 Act also empowered the Central Government to require a company to convert the loans granted or debentures…

Read More

Shareholder’s rights – Company Registration in Bangalore

Section 82 of Companies Act, 1956 As discussed earlier there is a difference between the terms negotiable and transferable and shares and debentures are not negotiable instruments, but transferable of the shareholder. Shares or debentures are movable property as made explicit under section 82 of the 1956 Act, and now by section 44 of the 2013 Act. Shareholder’s rights The rights of shareholders are: to elect directors and thus to participate in the management through them; to vote on resolutions…

Read More