Shares/Debentures Articles

Share Certificate which is also known as Stock Certificate or Certificate of Stock,  is a document issued by a company certifying that on the date the certificate is issued, a certain person is the registered owner of specific number of shares in the company. A company issues its shares of ...

The amount required for the redemption of debentures is usually very large. It creates a great difficulty for the company to arrange this large amount to pay off its debentures. In case this large amount is paid out of company’s working capital, it may affect the routine working of the ...

Escrow Account a contract, deed, bond, or other written agreement deposited with a third person, by whom it is to be delivered to the grantee or promisee on the fulfillment of some condition.Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible assets) ...

1. Security Point of View (i) Secured Debentures (a) Fixed Charge: A fixed charge is created on certain specified assets generally immovable such as land and building, plant and machinery, long term investments and the like. So it is equivalent to mortgage. When the charge is fixed, the company can only deal ...

The Debenture Agreements is also called Debentures Contracts. The debentures agreements are issued all over the world by the governmental bodies as notes that express some degree of financial obligation. The debentures agreements or contracts include the various terms and conditions. The debentures agreements have a number of characteristics. The ...

Meaning A Debenture that is issued to the holder with an option to get it converted into the stock or shares from the issuing company as an alternative of taking the repayment of loan, but it does not include any accrued but unpaid interest thereon. These Debentures and bonds usually offer ...

Meaning When a Company desires to borrow a considerable sum of money for its expansion, it invites the general public to subscribe to its Debentures. A debenture is a certificate issued by the company acknowledging the debt due by it to its holders and is issued by means of a prospectus ...

Despite the various merits of Buy Back of Shares, there are serious apprehensions about this facility. It is feared that the buy back may be misused by the corporate entities at the cost of innocent investors. The inherent dangers may be listed as: (i) It will provide an ample opportunity for ...

1. Artificial Person: A company is an artificial person, which exists only in the eyes of law. The company carries business on its own behalf. It has a right to sue and can be sued, can have its own property and its own bank account. It can also own money ...

Meaning and Definition The Company is an artificial legal person created by law. A Company has a right to sue and can be sued, can own property and has banking account in its own name, own money and be a creditor. A Company has a separate legal entity, which is distinct ...