Companies Act 2013: Share Capital and Debentures

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What is the legal provision covering shares and debentures under the Companies Act, 2013?

Chapter V

Chapter III

Chapter IV (correct)

Chapter VI

How are shares and debentures presented in the Balance Sheet?

Shares - assets side, Debentures - liabilities side

Both on the assets side

Both on the liabilities side

Shares - liabilities side, Debentures - assets side (correct)

What is the definition of a share according to Section 2(84) of the Companies Act, 2013?

An interest measured in a sum of money (correct)

A unit of stock

A sum of money

A contract

How is the capital of a company termed?

Share capital Signup and view all the answers

What rights does a share in a company represent?

Right only to a fixed sum of money Signup and view all the answers

How are shares described in the case New London & Brazilian Bank v. Brockle Bank?

Interest measured in a sum of money Signup and view all the answers

When a company issues shares at a price higher than their face value, what is the differential amount called?

Premium Signup and view all the answers

Which organization's guidelines have to be followed by listed entities regarding issuing shares at par or at premium?

SEBI Signup and view all the answers

In the context of shares, what does AOA stand for?

Articles of Association Signup and view all the answers

What is the Face Value of a share that is issued at a price of ₹14, with a premium of ₹4, according to Example 8?

₹10 Signup and view all the answers

When was the date of listing for Lloyds Luxuries IPO on NSE SME?

October 11, 2022 Signup and view all the answers

What would be the premium charge per share if the Fixed issue price is ₹40 and Face Value is ₹10?

₹15 Signup and view all the answers

What do shares represent in a company according to the text?

Entrepreneurial risks and rewards Signup and view all the answers

What is the main purpose of issuing shares and debentures in a company?

To arrange funds for the company Signup and view all the answers

Under the Companies Act, 2013, what are shares and debentures collectively referred to as?

Securities Signup and view all the answers

In what way do debentures differ from shares?

Debentures have limited risks and returns Signup and view all the answers

What may a company do post issuance of capital based on the text?

Alter or reduce share capital as needed Signup and view all the answers

Which of the following is NOT a financial instrument used by companies to raise funds?

Loans Signup and view all the answers

What is the implication of Richa Daniel not being a holder of 7,000 shares as per the Register of Members?

The transfer to her cousin Stesley is still valid. Signup and view all the answers

What is the alternative for Richa Daniel to become the holder of the 7,000 shares?

Apply to Speed Software Limited with the share certificates and a succession certificate. Signup and view all the answers

Why is there no need to submit a transfer deed in the case of transmission of shares to Richa Daniel?

Deceased persons cannot sign transfer deeds. Signup and view all the answers

What happens after the company scrutinizes the documents submitted by Richa Daniel for share transmission?

Richa Daniel's name gets entered into the Register of Members, and Alexander Daniel's name gets removed. Signup and view all the answers

Why does Richa Daniel need to provide a succession certificate along with the application for share registration?

As proof that she is a legal representative of Alexander Daniel. Signup and view all the answers

What will happen once Richa Daniel is registered as the holder of the 7,000 shares?

The company will issue new share certificates in Richa Daniel's name. Signup and view all the answers

When a company with share capital plans to increase its subscribed capital by issuing further shares, to whom should the new shares be offered first?

To existing equity shareholders Signup and view all the answers

How should the shares be offered to existing equity shareholders in a company?

In proportion to the paid-up capital on their existing shares Signup and view all the answers

What is required for offering further shares to existing equity shareholders in a company?

A special resolution and offer through notice Signup and view all the answers

In the context of issuing further shares, what does 'Right Issue' refer to?

Issuing shares to existing equity shareholders first Signup and view all the answers

What is the significance of a 'Special Resolution' in the context of issuing further shares?

It is required for certain types of offers, like employee stock options Signup and view all the answers

What should a notice specifying the offer of further shares include according to the text?

Both the number of shares to be offered and the time period within which the offer must be accepted Signup and view all the answers