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
Question 1: (a) Distinguish between Industrial Relations and Employee Relations? (b) Explain five causes of Employee Grievances with suitable examples. (c) What ar
LEGAL PROTECTION OF MINORITIES: According to decisions of English courts, companies are democratic organisations whose affairs are to be managed by the directors according to
Problem 1: Give a critical description of Hart's concept of law and discuss the failings in such theory. Problem 2: Analyse Austin's command theory of law and discuss h
Question 1: (a) Explain what you understand by the following legal terms under the Employment Relations Act - (i) Collective bargaining (ii) Collective agreement (iii
WINDING UP ON: "THE JUST AND EQUITABLE GROUND": Unlike the other five grounds this one is widely interpreted and it is no objection that the petition is based on facts u
For the transactions provided below for the Braves Corporation during 2011, complete the following steps of the accounting cycle (round all answers and journal entries to the neare
Determine the concept of credibility Let us make it clear that credibility of a policy and that of a policy maker are two different things. Institutional constraints may make a
Elements of Estoppel Presentation crucially to be acted on reliance on the presentation and one is Change in the legal position as a product of the reliance and one is
Q. Impact on businesses of phoenix activity? In 1996 the Australian Securities Commission (ASC), published a report on phoenix activity titled Phoenix Activities and Insolvent
QUESTION 1 You are given the task to make a Code of Ethics for your organization (a) Describe a Code of Ethics (b) What are the different aspects/issues that you might in
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd