Methods of public issue, Business Law and Ethics

Assignment Help:

Methods of Public Issue:

A company's authorised capital may be raised in one or the other of the following ways:

a)      PLACING

A 'placing' occurs if the company, instead of selling its shares directly to the public, arranges with a broker to sell them on its behalf.

                                   Company.............................................Broker .......................sells the shares to..............Public

                                      (acts as the company's agent)

 

The shares are said to be "placed" with the broker. A placing may be "a private placing" if the shares are to be offered for sale to selected customers of the broker (usually institutional investors) rather than made available to the general public.

b)      OFFER FOR SALE

An "offer for sale" is an arrangement whereby a company sells some of its shares to a financial institution called "Issuing House". The issuing house will then re-sell the shares to the public.

 

                            Company........sells shares to.......Issuing House............Resells the shares ..........to Public

                                               (Issues a document called  "Offer for sale")

 

The company normally issues renounceable allotment letters to the issuing house to facilitate the transfer of specific shares to designated purchasers. This obviates the necessity of having to register the name of the issuing house in the company's register of members when shares are allotted to it and having its name removed from the register shortly afterwards when the public buy the shares.


Related Discussions:- Methods of public issue

Nature of a company, Nature of a Company: There is no precise legal de...

Nature of a Company: There is no precise legal definition of "a company". This is due to historical reasons which are too lengthy to be narrated in this text. Suffice it to sa

Explain the principles of tort law, QUESTION 1 With reference to the rel...

QUESTION 1 With reference to the relevant articles of the Mauritian Civil Code, explain the principles of tort law QUESTION 2 An employer should ensure the well being of a

Need for research design, Need for research Design: a. It facilities ...

Need for research Design: a. It facilities the smooth sailing of the various research operations thereby making research as efficient as possible yielding maximal inf

What are the functions of the employment relations, Question 1: (A) W...

Question 1: (A) What are the functions of the Employment Relations Tribunal established under the Employment Relations Act 2008? (B) What are the functions of the Commissi

What are the functions of the commission for conciliation, Question 1: ...

Question 1: (a) Explain what you understand by the following legal terms under the Employment Relations Act - (i) Collective bargaining (ii) Collective agreement (iii

Law and morality, Law and Morality: Since morality contain of prescrip...

Law and Morality: Since morality contain of prescriptions of the society and is not enforceable, hence rules of law are enforceable.  However wrongs in society are contraventi

Act defined a traffic indication, Act defined a traffic indication: Ho...

Act defined a traffic indication: However in EVANS v CROSS, Evans was charged by ignoring namely, a traffic sign, a white line painted in the middle of a road, whether overtak

Group accounts, Group Accounts: Section 150 requires a company which h...

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

Options for addressing phoenix activity , Stakeholders emphasised that a c...

Stakeholders emphasised that a coordinated, whole of government approach is necessary to mitigate phoenix activity. Stakeholders also emphasised that options should recognise th

Analyze the basic ethical values for business, Question: (a) Ethics i...

Question: (a) Ethics is the set of moral principles by which people conduct themselves personally, socially, or professionally. Critically analyze the basic ethical values

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd