These are shares which gives the voting rights. So the equity shareholders are the real owners of the company as they participate in decision making. The voting rights are proportionate to the shares held with respect to the total equity share capital of the company. Equity shareholders can get the dividend only after the dividend […]
What are Equity Shares Read More »
Preference shares can be broadly classified based on following four criteria : Based on right to receive dividend There can be two kinds of preference shares : 1) Cumulative Preference Shares 2) Non-Cumulative Preference shares Cumulative preference shares are those shares which has the right to receive arreas of dividend. Suppose a company cannot pay
Types of Preference Shares Read More »
Companies will usually need huge capital to run the business. Such huge capital cannot be contributed by an individual or a small group of individuals. So for raising huge capital for running big business, thousands and lakhs of individuals and institutions will contribute money. So to facilitate the allocation of capital to so many individuals
Meaning of Share Capital Read More »
Companies raise money from the public for running business. The amount of issue is not some ad hoc amount, but a carefully calculated amount based on business requirements. Suppose you have to buy a dress, which costs ru. pees 1000. If you have rupees 800 only can you buy the dress? The answer is no.
Minimum Subscription Read More »
Promotion This is the first stage of the company’s incorporation. a group of persons agreed to start the business and form a company. These persons are known as promoters Registration of a Company (Also called incorporation) Since the company is an artificial perso so it cannot be made naturally. Thus companies are formed by following
How a new company is incorporated Read More »
Companies limited by shares Companies limited by Guarantee Unlimited Companies
Classification of companies based on Liability Read More »
There are three types of companies based on the no of members One Person Company This type of company has only one member which is a natural person. This type of company has the following characteristics Private Company The key characteristic of this type of company is non transferability of shares i.e its shares cannot
Types of Companies Read More »
A Company is an association of persons formed and registered under the companies Act. Association of Persons – A group of persons who come together for achieving a common objective. Companies Act – Act to regulate the affairs related to companies. The present companies act was formulated in 2013 Characteristics of a Company Separate Legal
Meaning of Company Read More »
