Issue of Rights shares to Existing Shareholders- Business Registration

Companies Act 2013 : Section 62 – Issue of rights shares Section 62 of the 2013 Act was notified and has been in effect from 01-04-2014,except Sub-sections(4) to (6) which have not been notified ,at the time of going to press.Section 62 of the 2013 Act,like Section 81 of the 1956 Act,provides for issuance of shares to employees under Employee’s Stock Opinion Scheme and issue of shares on preferential basis.Sub-sections(4) to (6) of the Section 62 which have not been…

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Analysis of Relevant Provisions of Companies Act,1956 – Business Registration

Section 13 of Companies Act,1956 Section 3 of the Companies Act corresponds to section 13 of the 1956 Act and to the extend that both the provisions are similar the case law and commentary on Section 13 of the 1956 Act will be relevant to section 3 of the 2013 Act. Name clause[Section 13(1)(a) of Companies Act,1956] The name of every private company shall contain as its last words,the words “Private Limited”  and every public company shall contain as its…

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Legal Personality of the Company -Business Registration

A company is a separate legal entity not withstanding the fact that there was only one governing director.The separate legal entity  enabled a director,representing the firm,to enter into a contract of  employment with himself in his individual capacity.one of the characteristics of a company is that it is an incorporated body of persons.It is constituted into a distinct and independent person in law and it is endowed with special rights and privileges.It is not like a partnership firm or a…

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Company’s share and its types and functions

A share is a token or evidence of ownership, and each one represents a vote in the company. Any individual shareholder can have one, or many shares as they required.As every share counts as a vote in the company, the more shares you have then you get more votes.  if a person with 5 shares, he get 4 votes except him. The quantity of these votes depend on how many shares you have .commonly many shares do not be issued…

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Certificates of Shares of the limited company

Certificate of Shares   According to the provisions of the Companies Act,1956, a certificate ,under the common seal of the company,specifying any shares hold by any member,shall be evidence of the title of the member to such shares.A certificate may be renewed or a duplicate of a certificate may be issued if such certificate is provided to have been lost or destroyed ,or have been defaced or mutilated or torn is surrounded to the company.If a Company with intent to defraud…

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What is Memorandum of Association and its Clauses?

Hereby, we are going to discuss what is memorandum of association, purpose and its clauses in detail. Look at this to know some useful information about the company before you set up a business. Memorandum of association: It is the constitution of the company and provides the foundation on which the structure has been built. It is the principal document of the company and it cannot be registered without the memorandum of association. It defines the scope of the company’s…

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Everything you need to know about Mergers and Acquisition

Mergers and Acquisition: It’s a term which refers to the consolidation of the companies or assets; it can include a number of transactions such as mergers, acquisition, consolidations, purchase of assets, tender offers and management acquisitions. M&A also refers to the department at financial institutions which deals with mergers and acquisitions.  Transactions of M&A: Merger: In merger, boards of directors for two companies approve the combination and seek for shareholder’s approval. After the merger, the acquired company ceases to exist…

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Effective ways for the entrepreneurs to protect their vision

Affordable and effective ways for the entrepreneurs to protect their vision: Many entrepreneurs might have faced many issues related to the business ideas. If you are very sure about the million dollar idea but you don’t have enough cash to get your idea off the ground. Make sure let that idea alone can be protected. In a capitalist society, pursuing our dreams usually needs more money to be highly successful or otherwise your ideas might get stolen because of having…

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Key ideas for a new business – New Business Registration

Some of the specific business ideas will be discussed here. This will be quite useful for the entrepreneurs who are very eager to know the essential things to startup a new business. To become a successful entrepreneur is the ultimate goal for some people but they are getting stuck early because of the fearful and the doubtful thoughts about their success. The real fact is to have a good idea, creativity and the right amount of capital. But most of…

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Golden rule or Golden legacy of the prospectus of a company

The golden rule regarding prospectus of the company is going to be discussed here. Keep an eye on this to capture some more interesting information.  Golden Rule: It is the duty of those who issue the prospectus to be truthful in all respects. This golden rule was enunciated by Kinderseley, V.C. And has come to be known as the “golden legacy”. Those who issue a prospectus hold out to the public great advantages which will accrue to the persons who…

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