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Business Environment and Law-Share & Share Capital

Issue Of Shares To Existing Shareholders: -Share & Share Capital

   Posted On :  14.05.2018 09:14 pm

The capital is also raised by ‘issue of rights shares’ to the existing shareholders (Sec.81). In the case, the shares are allotted to the existing equity shareholders in proportion to their original shareholding.

Issue Of Shares To Existing Shareholders:
 
 
The capital is also raised by ‘issue of rights shares’ to the existing shareholders (Sec.81). In the case, the shares are allotted to the existing equity shareholders in proportion to their original shareholding.
 

Public Issue Of Shares:

 
 
Public issue of shares means the selling or marketing of shares for subscription by the public by issue of prospectus.
Allotment of Shares: It means and implies a division of the share capital into defined shares of a particular value or of different classes and assignment of such shares to different persons.
 

Share Certificate (Section 113):

 
 
The share certificate states the name, address, occupation of the holder together with the number of shares and their distinctive number and amount paid-up. It must bear the common seal of the company, must be stamped and bear the signature of one or more directors.

Share Warrants (Section 114):

 

A share warrant is a negotiable instrument. It entitles the bearer to the shares specified in it and he can transfer the ownership of shares by merely delivering the share warrant to the transferee.

 

Membership:


Membership can be in the following ways:


1. The subscribers of the Memorandum

2. Every other person who agrees in writing to become a member

3. Every person holding equity share capital of a company

 

Member And Shareholder:

 

In the case of an unlimited company or a company limited by guarantee, a member may not be a shareholder.

 

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