Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Shares Issued At A Premium:
A company may at times issue its shares at a price above their nominal value, i.e at a premium. This may be necessitated by the fact that the company's shares which have already been issued are being sold in the open market at a price which is above their nominal value. Since such an issue does not jeopardize the position of the company's creditors there is no legal requirement that the issue be confirmed by the court. However, Section 58 (1) provides that where a company issues shares at a premium, where for cash or else or there may a sum equal to the aggregate amount or value of the premiums on those shares shall be transferred to an account called "the share premium account". However the section further offers that the share premium account shall be governed by the provisions of the Companies Act relating to the reduction of the share capital of a company as if the share premium account were paid share capital of the company. This means, in effect, that the funds credited to the share premium account are not paid out by the company except in the legitimate course of its business.
Sub-section 2 provides that the share premium account may however be applied by the company:
a) To pay up unissued shares of the company which are to be issued to members of the company as fully-paid bonus shares;
b) To write off the preliminary expenses of the company;
c) To write off the expenses of any issue of shares or debentures of the company, or the commission paid or discount allowed on such issue, or
d) To provide for the premium payable on redemption of any redeemable preference shares or debentures of the company
Proceedings for Compulsory Liquidation: When the petition is presented to the court a copy is delivered to the company in case it objects, and it is advertised so that other
Choice Of Method: There are three statutory methods to be considered: Where one company offers to acquire the shares of another company and its offer is accepted b
Right to prior repayment: Therefore this was not variation of class rights since the existing preference shareholders had the same number of shares (and votes at a class meeti
Declaration and Payment: There is no provision in the Act dealing with payment of dividends. It is therefore governed by the provisions of the company's articles, failing whic
This project requires you to choose an organisation of your own choice and discuss on the following with respect to your chosen organisation: External Environment Mega
When was International Criminal Court for Rwanda established Moreover, in early 1990s the International Criminal Tribunal for Yugoslavia (ICTY) was established under UNSC Resol
Decode the Code Problem Description Smugglers are becoming very smart day by day. Now they have developed a new technique of sending their messages from one smuggler to another. In
Group Accounts: Section 150 requires a company which has subsidiaries to lay before the company in general meeting accounts or statements dealing with the state of affairs an
Sale of Goods However in US Law relating to the sale and purchase of goods is such contained in the Sale of Goods Act like cap 31. Therefore the Act is a reproduction of Goods
Trade Unions: Trade Unions are registered under s.11 of the Trade Unions Act 1952 with the primary object of regulating the relations between employees and
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd