Share capital of a company is all about financing for its operations. Company issues its share to raise capital. On allotted shares, company may receive all money against premium and face value of share in one go or in instalment. In present post, we will discuss; call on shares, unpaid share capital, dividend, share premium, shares at discount, sweet equity and preference shares.
Tag Archives: Sweat Equity
In recent posts, we discussed provisions of Chapter III of the Companies Act, 2013. This is time to discuss major penal provisions in this chapter.
CRIMINAL LIABILITY FOR MIS-STATEMENT IN PROSPECTUS (SECTION 34):
Where a prospectus, issued, circulated or distributed:
a) includes any statement which is untrue or misleading in form or context in which it is included; or
b) where any inclusion or omission of any matter is likely to mislead;
Every person who authorises the issue of such prospectus shall be liable under section 447 i.e. fraud.
In recent posts, we have discussed matters related to prospectus. In this post we will discuss, matters related to issue and allotment of securities following public offer.
SECURITIES IN DEMATERIALISED FORM (SECTION 29):
Under this section;
- Every company making public offer; and
- Such other class or classes of companies as may be prescribed
shall issue the securities only in the dematerialised form.
When any company issue its securities in dematerialised form, provisions of the Depositories Act, 1996 and regulations made under that Act shall be applicable.
There is no bar for any other company to issue its securities in any form. Any other company may convert its securities into dematerialised form.