Shares & debentures

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Shares & debentures

  1. 1. Shares & Debentures <br />Presented By<br />Kamran Khan<br />On Date : 8th October 2010<br />Shri Ramdeobaba College Of Engineering & Management , Nagpur<br />
  2. 2. Classification OF Share capital<br />1)Authorized Capital<br />2) Issued Capital<br />3) Subscribed Capital<br />4) Paid-Up Capital<br />5) Un-called Capital [sec 99]<br />
  3. 3. Authorized Capital <br /> Issued Capital<br /> Subscribed Capital<br /> Paid Up Capital<br /> Un-called Capital<br />SHARE CAPITAL<br />Pictorial Representation of share capital<br />
  4. 4. Nature & Classification of Shares<br /><ul><li>Classification Of Share Under Company Act</li></ul> 1913 into Three Types<br /> 1) Deferred Share<br /> 2)Preference Share<br /> 3)Ordinary Share<br /><ul><li>Classification Of Share Under Company Act</li></ul> 1956 into Two Types<br /> 1) Equity Shares [section 85(2) & 86]<br /> 2) Preference Share [section 85]<br /><ul><li> Lalchand Surana Ors Vs Hyderabad Vanaspathy Ltd(1988)</li></li></ul><li>Classification Of Preference Share<br />1) Cumulative Preference Share<br />2) Non-cumulative Preference Share<br />3) Redeemable Preference Share [sec 80]<br />4) Irredeemable Preference Share<br />5) Convertible Preference Share<br />6) Non-convertible Preference Share<br />7) Participating Preference Share<br />8) Non-Participating Preference Share<br />
  5. 5. Redemption Of Irredeemable Preference Share<br /> Under Company(Amendment)Act 1988 & Company(Amendment)Act 2002<br /><ul><li> Before 5 years From Commencement Of Company
  6. 6. Before 10 years From Date Of Issue</li></li></ul><li>Voting right of shareholder<br />1) For equity shareholder[sec 87(a)]<br /><ul><li> In Election Of Board Of Directors
  7. 7. Change In Policy Of Company
  8. 8. Issue Of Share At Premium , Discount & </li></ul> Other Than Cash<br />2) For Preference Share Holder [sec 87(b)]<br />
  9. 9. Issue Of SHARES Capital <br /><ul><li> Issue Of Shares [sec 81]
  10. 10. Issue Of Shares At Premium [sec 78]
  11. 11. Issue Of Shares At Discount [sec 79]
  12. 12. Issues Of Shares Other Than Cash</li></li></ul><li>Certificate Of Share [sec 84 & 113]<br />
  13. 13. Transfer of Share<br /><ul><li> Instrument Of Transfer [sec 108]
  14. 14. Transfer Of Instrument In Prescribed Form
  15. 15. Time Limit For Presentation Of Instrument
  16. 16. Application Of Transfer [sec 110]
  17. 17. Transfer By Legal Representative
  18. 18. Registration Of Transfer
  19. 19. Cancel Old & Issue New Share Certificate</li></li></ul><li>Cancellation Of Old Share<br />Old Share Cancelled By Company Law Board With Sign & Stamped <br />
  20. 20. Refusal & Restriction On Transfer<br /><ul><li> Refusal Of Registration Of Transfer Of Share [sec 111]
  21. 21. Appeal Against Refusal [sec 111(5)]
  22. 22. Restriction On Transfer Of Share</li></li></ul><li>Transmission OF Share<br /><ul><li>In Absence Of Nominee [sec 109A]
  23. 23. In Presence Of Nominee [sec 109B]</li></li></ul><li>Difference Between Transfer & transmission<br />Transfer Of Shares<br />Transmission Of Shares<br /><ul><li> By Act Of The Party.
  24. 24. Instrument Of Transfer Is Necessary.
  25. 25. Liability Of Transferor Is Ceased Immediately
  26. 26. Transfer Can Be Refused</li></ul> As Company Law Board.<br /><ul><li> Formality Of Sign , Stamp &</li></ul> Execution.<br /><ul><li> By act of Operation of Law.
  27. 27. Instrument Of Transfer Is Not Necessary.
  28. 28. Liability Of Transferor Is Not Ceased.
  29. 29. Transmission Cannot Be Refused As AOA
  30. 30. No Formality Of Sign , Stamp & Execution. </li></li></ul><li>Debentures<br /><ul><li>Introduction To Debentures.
  31. 31. Some Common Features Of Debentures :
  32. 32. Credit instrument
  33. 33. Interest Rates
  34. 34. Maturity date</li></li></ul><li><ul><li>Voting Rights
  35. 35. Face Value
  36. 36. Priority Of Liquidation</li></li></ul><li> Cost of capital debenture<br /><ul><li> Debenture Agreement
  37. 37. Factors Affecting Debenture</li></li></ul><li> Advantages <br /><ul><li>Tax of Debentures
  38. 38. Benefit to shareholders
  39. 39. Ownership Problem
  40. 40. Short term Borrowing
  41. 41. Hedge Against Inflation</li></li></ul><li>Disadvantages<br /><ul><li>Financial Risk
  42. 42. Commitment of Fixed Repayment
  43. 43. Rate Of Return</li></li></ul><li> Types of debentures<br /><ul><li>Secured Debentures
  44. 44. Unsecured Debentures
  45. 45. Convertible Debentures
  46. 46. Non convertible Debentures</li></li></ul><li><ul><li>Redeemable Debentures
  47. 47. Irredeemable Debentures
  48. 48. Mortgage Debentures
  49. 49. Registered Debentures</li></li></ul><li>Certificate of debenture<br />
  50. 50. Thank U !!!<br />

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