Legal formalities are essential for startups to avoid costly mistakes later. When starting a venture, founders must choose a legal entity like a company, LLP, or partnership and draft key documents. These include a memorandum of association outlining the company's objectives, articles of association establishing rules and procedures, and a founders' agreement clarifying roles and equity splits if multiple founders. During fundraising, a non-binding term sheet sets the basic investment terms before legal agreements are finalized. Common mistakes include not clearly defining exit terms, misunderstanding investment documents, and failing to formalize employment agreements. It is important for founders to work closely with legal counsel well-versed in relevant laws.
Two parties form a joint venture company in India. One party transfers its business to the company and receives shares in return. The other party subscribes to shares in the company by paying cash. A joint venture can be domestic, between partners of the same nationality, or international, between partners of different nationalities. Key clauses in a joint venture agreement address shareholding proportions, board composition, decision making, funding, confidentiality, dispute resolution, and termination.
Financial management provides a conceptual framework for making financial decisions to help individuals and businesses grow financially. It involves acquiring, financing, and managing assets to achieve overall goals. The key financial decisions are investment, financing, and managing working capital. Investment decisions evaluate projects and allocate capital. Financing decisions determine optimal debt-equity ratios. Working capital management balances short-term liquidity and long-term profitability. Together, these decisions aim to maximize shareholder wealth over the long run.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
This document provides an overview of joint ventures and strategic alliances. It defines a joint venture as a business arrangement where two or more parties pool resources to achieve a goal, sharing both risks and rewards. Key objectives of joint ventures include gaining access to new markets, reducing costs, and risk sharing. The document outlines the key differences between equity-based joint ventures, which create a new shared entity, and strategic alliances, which do not share ownership. It provides details on forming a joint venture company, prohibited sectors for foreign investment, and critical factors for a successful joint venture such as trust between partners and clear objectives.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
A Joint Venture (JV) is a business arrangement in which two or more parties agree to pool their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared.
For Joint Venture & Strategic Alliance contact us at (020) 2442 – 0209. Visit http://huconsultancy.com/
Term Sheets – Legal Issues By Ms. Neela Badami of Samvaad VenturesKesava Reddy
Sources of equity funding for startups are becoming more numerous and more diverse in character. And so are the terms on which the funds are made available. It is important for a startup to understand the terms on which it raises funds. These are captured in a term sheet. The term sheet is a critical document because it captures the investor’s commercial expectation from the investment. Learn all about term sheets from a panel of experts comprising a leading lawyer, an investment banker, investment professionals and entrepreneurs at NSRCEL’s ForStartups.
Contractual Considerations by Kylie van HeerdenLocus Research
This document discusses key contractual considerations for product development and research agreements. It outlines important terms to address such as the scope and timeline of projects, obligations of providers, intellectual property ownership, fees and payments, confidentiality, insurance, termination, and dispute resolution. It also reviews structural options for commercial relationships, comparing incorporated joint ventures, unincorporated joint ventures, and limited partnerships in terms of their advantages and disadvantages.
Legal formalities are essential for startups to avoid costly mistakes later. When starting a venture, founders must choose a legal entity like a company, LLP, or partnership and draft key documents. These include a memorandum of association outlining the company's objectives, articles of association establishing rules and procedures, and a founders' agreement clarifying roles and equity splits if multiple founders. During fundraising, a non-binding term sheet sets the basic investment terms before legal agreements are finalized. Common mistakes include not clearly defining exit terms, misunderstanding investment documents, and failing to formalize employment agreements. It is important for founders to work closely with legal counsel well-versed in relevant laws.
Two parties form a joint venture company in India. One party transfers its business to the company and receives shares in return. The other party subscribes to shares in the company by paying cash. A joint venture can be domestic, between partners of the same nationality, or international, between partners of different nationalities. Key clauses in a joint venture agreement address shareholding proportions, board composition, decision making, funding, confidentiality, dispute resolution, and termination.
Financial management provides a conceptual framework for making financial decisions to help individuals and businesses grow financially. It involves acquiring, financing, and managing assets to achieve overall goals. The key financial decisions are investment, financing, and managing working capital. Investment decisions evaluate projects and allocate capital. Financing decisions determine optimal debt-equity ratios. Working capital management balances short-term liquidity and long-term profitability. Together, these decisions aim to maximize shareholder wealth over the long run.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
This document provides an overview of joint ventures and strategic alliances. It defines a joint venture as a business arrangement where two or more parties pool resources to achieve a goal, sharing both risks and rewards. Key objectives of joint ventures include gaining access to new markets, reducing costs, and risk sharing. The document outlines the key differences between equity-based joint ventures, which create a new shared entity, and strategic alliances, which do not share ownership. It provides details on forming a joint venture company, prohibited sectors for foreign investment, and critical factors for a successful joint venture such as trust between partners and clear objectives.
Joint Venture & Strategic Alliance- hu consultancyHU Consultancy
A Joint Venture (JV) is a business arrangement in which two or more parties agree to pool their resources and expertise to achieve a particular goal. The risks and rewards of the enterprise are also shared.
For Joint Venture & Strategic Alliance contact us at (020) 2442 – 0209. Visit http://huconsultancy.com/
Term Sheets – Legal Issues By Ms. Neela Badami of Samvaad VenturesKesava Reddy
Sources of equity funding for startups are becoming more numerous and more diverse in character. And so are the terms on which the funds are made available. It is important for a startup to understand the terms on which it raises funds. These are captured in a term sheet. The term sheet is a critical document because it captures the investor’s commercial expectation from the investment. Learn all about term sheets from a panel of experts comprising a leading lawyer, an investment banker, investment professionals and entrepreneurs at NSRCEL’s ForStartups.
Contractual Considerations by Kylie van HeerdenLocus Research
This document discusses key contractual considerations for product development and research agreements. It outlines important terms to address such as the scope and timeline of projects, obligations of providers, intellectual property ownership, fees and payments, confidentiality, insurance, termination, and dispute resolution. It also reviews structural options for commercial relationships, comparing incorporated joint ventures, unincorporated joint ventures, and limited partnerships in terms of their advantages and disadvantages.
This document provides an overview of shares, share capital, types of shares (equity shares and preference shares), debentures, and meetings and resolutions in companies. It defines key terms like shares, share capital, equity shares, preference shares, debentures. It describes the different types of each, along with their advantages and disadvantages. It also explains the different types of meetings that can be held in companies like statutory meetings, annual general meetings, extraordinary general meetings. Finally, it summarizes the different types of resolutions that can be passed in meetings - ordinary resolutions, special resolutions, and resolutions requiring special notice.
The document discusses several types of business agreements, including memorandums of understanding, franchise agreements, joint venture agreements, founders agreements, share purchase agreements, and shareholders agreements. It provides brief descriptions of the purpose and key elements of each type of agreement. For example, it states that a memorandum of understanding is a preliminary agreement that is not legally binding, while a franchise agreement legally allows a person to use a known brand name and provides access to proprietary resources.
A joint venture is when two or more companies collaborate on a business project together for a set period of time. There are two main types of joint ventures: domestic, involving partners from the same country, and international, involving partners from different countries. Joint ventures provide benefits like access to new markets, resources, and expertise, while also reducing risks. However, they can also pose disadvantages such as difficulties in setting up and potential cultural/management clashes between partners. Important elements to consider when forming a joint venture include ownership structure, management roles, decision making processes, funding, and termination provisions.
A joint venture is when two or more companies collaborate on a business project together for a set period of time. There are two main types of joint ventures: domestic, involving partners from the same country, and international, involving partners from different countries. Joint ventures provide benefits like accessing new markets, resources, expertise, and risk sharing. However, they also pose disadvantages such as being time-consuming to set up and potential cultural/management clashes between partners. Key aspects of a joint venture agreement include ownership structure, management roles, decision making processes, funding, intellectual property sharing, and termination conditions.
Pillay Ronal Anthony Roll no;79 assignment 1.pdffiweif
The document discusses different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. It covers the key characteristics of each type of business organization such as sole proprietorships being owned by one individual, partnerships having two or more owners who share profits and liability, corporations being legally separate entities from their owners with transferable shares, and cooperatives being jointly-owned organizations that provide services to their members. The document also compares the advantages and disadvantages of each type of business organization and factors to consider when choosing between them such as capital requirements, liability, and tax implications.
LBOs involve acquiring companies using a combination of equity and debt financing. A financial sponsor such as a private equity firm provides a small amount of equity and uses leverage (debt financing) to fund the remainder of the acquisition. The acquired company's assets are used as collateral for the borrowed capital. LBOs allow financial sponsors to make large acquisitions with limited capital commitment and provide tax benefits. However, they also involve high financial risk if the acquired company cannot generate sufficient cash flow to service the debt.
Types of Partners, Partnership Merits and Demerits, Partner by Holding out, Parter by estoppel, Registration of Partnership, The difference between a sole proprietorship and Partnership, features of Partnership act 1932, Mutual consent of Partners, Mutual agency
Private Equity is a form of investment in equity capital of a company that is not quoted on a public exchange. Obtaining PE is very different from raising debt or a loan from a lender, such as a bank. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of your success or failure.
Welcome to the world of investment opportunities in India.
Explore a diverse range of investment avenues in one of the fastest-growing economies in the world.
Slide 2: Why Invest in India?
India's robust economic growth and stability.
Demographic advantage with a young and skilled workforce.
Favorable government policies to encourage foreign investment.
Access to a large and growing consumer market.
Slide 3: Traditional Investments
Description of traditional investment options:
Fixed Deposits (FDs)
Public Provident Fund (PPF)
National Savings Certificates (NSC)
Gold and Real Estate
Slide 4: Equities and Stock Market
Investing in Indian Stock Markets.
Benefits of stock investments.
Overview of major stock exchanges: BSE and NSE.
Slide 5: Mutual Funds
Explanation of mutual funds.
Types of mutual funds available in India (Equity, Debt, Hybrid).
How to invest in mutual funds.
Slide 6: Real Estate Investments
Real estate market in India.
Residential and commercial property investments.
Real Estate Investment Trusts (REITs).
Slide 7: Fixed Income Securities
Government Bonds and Corporate Bonds.
Benefits of fixed income investments.
Risks and returns associated with bonds.
Slide 8: Gold Investments
India's love for gold.
Investment options in gold (Gold ETFs, Sovereign Gold Bonds).
Historical performance of gold as an asset class.
Slide 9: Startups and Venture Capital
India's thriving startup ecosystem.
Opportunities for venture capital investments.
Risks and rewards of investing in startups.
Slide 10: Foreign Direct Investment (FDI)
FDI policies and regulations in India.
Sectors open to foreign investment.
Steps to invest as a foreign entity.
Slide 11: Public-Private Partnerships (PPPs)
Collaborative investment opportunities with the government.
Infrastructure development, healthcare, and education projects.
Benefits and challenges of PPPs.
Slide 12: Systematic Investment Plan (SIP)
Understanding SIP as an investment strategy.
Benefits of regular investments.
How to start a SIP in India.
Slide 13: Investment Risks and Diversification
Importance of diversification in a portfolio.
Risks associated with various investment avenues.
Building a balanced and diversified investment portfolio.
Slide 14: Taxation and Investment
Tax implications on different investments.
Strategies to minimize tax liability.
Importance of tax planning in investment.
Slide 15: Conclusion
Recap of investment avenues in India.
Encouragement to explore and diversify investments.
Seek professional advice for personalized investment strategies.
Slide 16: Q&A
Open the floor for questions and discussions.
Slide 17: Contact Information
Provide contact details for further inquiries and consultations.
Slide 18: Thank You!
How should you design your start up companyaltsmart
This document discusses different legal structures for start-up companies in India, including their advantages and disadvantages. It describes sole proprietorships, partnerships, limited liability partnerships (LLPs), one person companies (OPCs), and private companies. Private companies have the highest setup costs but also provide more regulatory ease and ability to attract investors. The appropriate legal structure depends on factors like scalability, investment needs, and compliance requirements.
Presentation from the Finnish Cleantech Cluster's webinar on growth and internationalization for domestic high-growth cleantech and technology companies. Contains general considerations on business structuring, tax planning, legal issues to consider if the company wishes to establish operations abroad and different forms of financing available.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
Founders' agreement - A critical start for a start-up (Naina Krishnamurthy K ...Kartik Sarwade
This document summarizes the key points of a presentation on founders' agreements for startups. It discusses why such agreements are important to establish expectations and avoid future disputes between founders. The constituents of an effective agreement are outlined, including standard terms, board structure, contributions, vesting, intellectual property, and termination. Issues like ownership and transfer of shares, jurisdiction, and non-compete clauses are also addressed. The presentation emphasizes that founders' agreements should be in writing and properly executed to be legally enforceable.
The document discusses various sources of finance for companies. It categorizes sources as short term, medium term, and long term based on tenure. Short term sources include working capital finance from banks, trade credit, inter-corporate deposits, factoring, and commercial paper. Medium term sources include loans from banks and financial institutions, lease financing, hire purchase, external commercial borrowings, and bonds. Long term sources include shares, debentures, retained earnings, depository receipts, venture capital, and securitization. The document provides details on each type of financing source and their advantages and disadvantages.
1. The document discusses different types of business entities including sole proprietorships, partnerships, and corporations. It notes key characteristics of each like ownership, liability, taxation, and life of the business.
2. It then covers topics relevant to corporate finance including the roles of financial managers, the goal of maximizing shareholder wealth, and investment and financing decisions.
3. The document also discusses concepts such as the balance sheet, time value of money, net present value, and discounted cash flow analysis which are important tools used in financial management.
Legal structures to attract investors and penetrate the global market EkoInnovationCentre
Private equity funding and global expansion require careful legal structuring and due diligence. Private equity involves providing equity capital to growing companies in exchange for ownership stakes. The process includes expressing interest, conducting due diligence on both parties, negotiating terms, and closing with signed agreements. Both companies and investors must research the other thoroughly. Expanding globally requires understanding foreign laws, choosing governing law for contracts, selecting the proper legal entity like an LLC or joint venture, and ensuring compliance with corporate governance rules. Careful legal and risk assessment is vital for attracting investors and penetrating new markets.
This document provides an overview of investment term sheets, including:
- A term sheet is a non-binding agreement that outlines the basic terms and conditions for an investment, and serves as a template for more detailed legal documents.
- It balances the interests of entrepreneurs/inventors and investors by answering key questions around investment growth, roles, rights, and exit provisions.
- Once agreed, a binding contract is drawn up conforming to the term sheet details around items like valuation, investment amount, stake percentage, and provisions.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The document discusses different forms of business ownership including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one individual who is personally liable for all debts and obligations of the business. Partnerships involve two or more owners who share joint liability. General partnerships divide management equally while limited partnerships limit some liability and participation in management. Corporations are separate legal entities from their owners where shareholders have limited liability but the business is subject to more legal compliance requirements.
This document provides an overview of shares, share capital, types of shares (equity shares and preference shares), debentures, and meetings and resolutions in companies. It defines key terms like shares, share capital, equity shares, preference shares, debentures. It describes the different types of each, along with their advantages and disadvantages. It also explains the different types of meetings that can be held in companies like statutory meetings, annual general meetings, extraordinary general meetings. Finally, it summarizes the different types of resolutions that can be passed in meetings - ordinary resolutions, special resolutions, and resolutions requiring special notice.
The document discusses several types of business agreements, including memorandums of understanding, franchise agreements, joint venture agreements, founders agreements, share purchase agreements, and shareholders agreements. It provides brief descriptions of the purpose and key elements of each type of agreement. For example, it states that a memorandum of understanding is a preliminary agreement that is not legally binding, while a franchise agreement legally allows a person to use a known brand name and provides access to proprietary resources.
A joint venture is when two or more companies collaborate on a business project together for a set period of time. There are two main types of joint ventures: domestic, involving partners from the same country, and international, involving partners from different countries. Joint ventures provide benefits like access to new markets, resources, and expertise, while also reducing risks. However, they can also pose disadvantages such as difficulties in setting up and potential cultural/management clashes between partners. Important elements to consider when forming a joint venture include ownership structure, management roles, decision making processes, funding, and termination provisions.
A joint venture is when two or more companies collaborate on a business project together for a set period of time. There are two main types of joint ventures: domestic, involving partners from the same country, and international, involving partners from different countries. Joint ventures provide benefits like accessing new markets, resources, expertise, and risk sharing. However, they also pose disadvantages such as being time-consuming to set up and potential cultural/management clashes between partners. Key aspects of a joint venture agreement include ownership structure, management roles, decision making processes, funding, intellectual property sharing, and termination conditions.
Pillay Ronal Anthony Roll no;79 assignment 1.pdffiweif
The document discusses different types of business organizations including sole proprietorships, partnerships, corporations, and cooperatives. It covers the key characteristics of each type of business organization such as sole proprietorships being owned by one individual, partnerships having two or more owners who share profits and liability, corporations being legally separate entities from their owners with transferable shares, and cooperatives being jointly-owned organizations that provide services to their members. The document also compares the advantages and disadvantages of each type of business organization and factors to consider when choosing between them such as capital requirements, liability, and tax implications.
LBOs involve acquiring companies using a combination of equity and debt financing. A financial sponsor such as a private equity firm provides a small amount of equity and uses leverage (debt financing) to fund the remainder of the acquisition. The acquired company's assets are used as collateral for the borrowed capital. LBOs allow financial sponsors to make large acquisitions with limited capital commitment and provide tax benefits. However, they also involve high financial risk if the acquired company cannot generate sufficient cash flow to service the debt.
Types of Partners, Partnership Merits and Demerits, Partner by Holding out, Parter by estoppel, Registration of Partnership, The difference between a sole proprietorship and Partnership, features of Partnership act 1932, Mutual consent of Partners, Mutual agency
Private Equity is a form of investment in equity capital of a company that is not quoted on a public exchange. Obtaining PE is very different from raising debt or a loan from a lender, such as a bank. Lenders have a legal right to interest on a loan and repayment of the capital, irrespective of your success or failure.
Welcome to the world of investment opportunities in India.
Explore a diverse range of investment avenues in one of the fastest-growing economies in the world.
Slide 2: Why Invest in India?
India's robust economic growth and stability.
Demographic advantage with a young and skilled workforce.
Favorable government policies to encourage foreign investment.
Access to a large and growing consumer market.
Slide 3: Traditional Investments
Description of traditional investment options:
Fixed Deposits (FDs)
Public Provident Fund (PPF)
National Savings Certificates (NSC)
Gold and Real Estate
Slide 4: Equities and Stock Market
Investing in Indian Stock Markets.
Benefits of stock investments.
Overview of major stock exchanges: BSE and NSE.
Slide 5: Mutual Funds
Explanation of mutual funds.
Types of mutual funds available in India (Equity, Debt, Hybrid).
How to invest in mutual funds.
Slide 6: Real Estate Investments
Real estate market in India.
Residential and commercial property investments.
Real Estate Investment Trusts (REITs).
Slide 7: Fixed Income Securities
Government Bonds and Corporate Bonds.
Benefits of fixed income investments.
Risks and returns associated with bonds.
Slide 8: Gold Investments
India's love for gold.
Investment options in gold (Gold ETFs, Sovereign Gold Bonds).
Historical performance of gold as an asset class.
Slide 9: Startups and Venture Capital
India's thriving startup ecosystem.
Opportunities for venture capital investments.
Risks and rewards of investing in startups.
Slide 10: Foreign Direct Investment (FDI)
FDI policies and regulations in India.
Sectors open to foreign investment.
Steps to invest as a foreign entity.
Slide 11: Public-Private Partnerships (PPPs)
Collaborative investment opportunities with the government.
Infrastructure development, healthcare, and education projects.
Benefits and challenges of PPPs.
Slide 12: Systematic Investment Plan (SIP)
Understanding SIP as an investment strategy.
Benefits of regular investments.
How to start a SIP in India.
Slide 13: Investment Risks and Diversification
Importance of diversification in a portfolio.
Risks associated with various investment avenues.
Building a balanced and diversified investment portfolio.
Slide 14: Taxation and Investment
Tax implications on different investments.
Strategies to minimize tax liability.
Importance of tax planning in investment.
Slide 15: Conclusion
Recap of investment avenues in India.
Encouragement to explore and diversify investments.
Seek professional advice for personalized investment strategies.
Slide 16: Q&A
Open the floor for questions and discussions.
Slide 17: Contact Information
Provide contact details for further inquiries and consultations.
Slide 18: Thank You!
How should you design your start up companyaltsmart
This document discusses different legal structures for start-up companies in India, including their advantages and disadvantages. It describes sole proprietorships, partnerships, limited liability partnerships (LLPs), one person companies (OPCs), and private companies. Private companies have the highest setup costs but also provide more regulatory ease and ability to attract investors. The appropriate legal structure depends on factors like scalability, investment needs, and compliance requirements.
Presentation from the Finnish Cleantech Cluster's webinar on growth and internationalization for domestic high-growth cleantech and technology companies. Contains general considerations on business structuring, tax planning, legal issues to consider if the company wishes to establish operations abroad and different forms of financing available.
This document provides an overview of common stock and differences between debt and equity financing. It discusses key differences such as creditors having legal right to repayment while investors only have expectation, equityholders having last claim on assets in bankruptcy. Common stockholders are residual owners who receive dividends and capital gains. Preemptive rights protect common stockholders from dilution from new share issuances. Voting rights, dividends and international stock issues are also summarized.
Founders' agreement - A critical start for a start-up (Naina Krishnamurthy K ...Kartik Sarwade
This document summarizes the key points of a presentation on founders' agreements for startups. It discusses why such agreements are important to establish expectations and avoid future disputes between founders. The constituents of an effective agreement are outlined, including standard terms, board structure, contributions, vesting, intellectual property, and termination. Issues like ownership and transfer of shares, jurisdiction, and non-compete clauses are also addressed. The presentation emphasizes that founders' agreements should be in writing and properly executed to be legally enforceable.
The document discusses various sources of finance for companies. It categorizes sources as short term, medium term, and long term based on tenure. Short term sources include working capital finance from banks, trade credit, inter-corporate deposits, factoring, and commercial paper. Medium term sources include loans from banks and financial institutions, lease financing, hire purchase, external commercial borrowings, and bonds. Long term sources include shares, debentures, retained earnings, depository receipts, venture capital, and securitization. The document provides details on each type of financing source and their advantages and disadvantages.
1. The document discusses different types of business entities including sole proprietorships, partnerships, and corporations. It notes key characteristics of each like ownership, liability, taxation, and life of the business.
2. It then covers topics relevant to corporate finance including the roles of financial managers, the goal of maximizing shareholder wealth, and investment and financing decisions.
3. The document also discusses concepts such as the balance sheet, time value of money, net present value, and discounted cash flow analysis which are important tools used in financial management.
Legal structures to attract investors and penetrate the global market EkoInnovationCentre
Private equity funding and global expansion require careful legal structuring and due diligence. Private equity involves providing equity capital to growing companies in exchange for ownership stakes. The process includes expressing interest, conducting due diligence on both parties, negotiating terms, and closing with signed agreements. Both companies and investors must research the other thoroughly. Expanding globally requires understanding foreign laws, choosing governing law for contracts, selecting the proper legal entity like an LLC or joint venture, and ensuring compliance with corporate governance rules. Careful legal and risk assessment is vital for attracting investors and penetrating new markets.
This document provides an overview of investment term sheets, including:
- A term sheet is a non-binding agreement that outlines the basic terms and conditions for an investment, and serves as a template for more detailed legal documents.
- It balances the interests of entrepreneurs/inventors and investors by answering key questions around investment growth, roles, rights, and exit provisions.
- Once agreed, a binding contract is drawn up conforming to the term sheet details around items like valuation, investment amount, stake percentage, and provisions.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The document discusses different forms of business ownership including sole proprietorships, partnerships, and corporations. Sole proprietorships are owned by one individual who is personally liable for all debts and obligations of the business. Partnerships involve two or more owners who share joint liability. General partnerships divide management equally while limited partnerships limit some liability and participation in management. Corporations are separate legal entities from their owners where shareholders have limited liability but the business is subject to more legal compliance requirements.
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Lifting the Corporate Veil. Power Point Presentationseri bangash
"Lifting the Corporate Veil" is a legal concept that refers to the judicial act of disregarding the separate legal personality of a corporation or limited liability company (LLC). Normally, a corporation is considered a legal entity separate from its shareholders or members, meaning that the personal assets of shareholders or members are protected from the liabilities of the corporation. However, there are certain situations where courts may decide to "pierce" or "lift" the corporate veil, holding shareholders or members personally liable for the debts or actions of the corporation.
Here are some common scenarios in which courts might lift the corporate veil:
Fraud or Illegality: If shareholders or members use the corporate structure to perpetrate fraud, evade legal obligations, or engage in illegal activities, courts may disregard the corporate entity and hold those individuals personally liable.
Undercapitalization: If a corporation is formed with insufficient capital to conduct its intended business and meet its foreseeable liabilities, and this lack of capitalization results in harm to creditors or other parties, courts may lift the corporate veil to hold shareholders or members liable.
Failure to Observe Corporate Formalities: Corporations and LLCs are required to observe certain formalities, such as holding regular meetings, maintaining separate financial records, and avoiding commingling of personal and corporate assets. If these formalities are not observed and the corporate structure is used as a mere façade, courts may disregard the corporate entity.
Alter Ego: If there is such a unity of interest and ownership between the corporation and its shareholders or members that the separate personalities of the corporation and the individuals no longer exist, courts may treat the corporation as the alter ego of its owners and hold them personally liable.
Group Enterprises: In some cases, where multiple corporations are closely related or form part of a single economic unit, courts may pierce the corporate veil to achieve equity, particularly if one corporation's actions harm creditors or other stakeholders and the corporate structure is being used to shield culpable parties from liability.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
What are the common challenges faced by women lawyers working in the legal pr...lawyersonia
The legal profession, which has historically been male-dominated, has experienced a significant increase in the number of women entering the field over the past few decades. Despite this progress, women lawyers continue to encounter various challenges as they strive for top positions.
3. Table of Contents
• Meaning
• Types
• Funding
• Role of Regulator
• Joint Venture Agreement
• Intellectual Property
• Exit
4. Meaning
A joint venture is a contractual business undertaking between two or
more parties
It is similar to a business partnership, with one key difference -
• a partnership generally involves a long-term business relationship
i.e. going-concern
• whereas a joint venture is based on a single business transaction for
a definite period
5. Types
Joint ventures can broadly be classified into two broad categories:
Incorporated joint ventures Unincorporated joint ventures.
Joint ventures by their very nature provide a lot of flexibility to the
parties in terms of structuring
7. Joint Venture
Indian Investor Foreign Investor
FDI
(Equity)
DCF valuation
ECB
(Debt)
LIBOR + 500 basis
points for a 5 year loan,
Funding
8. Role of Regulator
Regulator Role
Reserve Bank of India (“RBI”)
Ministry of Finance
SEBI
CBDT
Primary authority to regulate capital
flows
Foreign Investment Promotion
Board (“FIPB”)
Approves FDI
Department of Industrial Policy and
Promotion (“DIPP”)
Responsible for promulgating policy
on FDI into the country
9. Joint Venture Agreement
Governance and Management
• Board of Directors
• Key Managerial Personnel
• Establishment of working offices
Restrictions on transfer of shares / Lock – in
Roles and Responsibilities of Parties
Affirmative Vote Matters / Veto Rights
Deadlock
• Buy – sell
• Third party expert
• Resolution committee
10. Intellectual Property
When two parties get together to form a joint venture is the brand name to be formed and
the ownership of the same
Once a joint venture company is formed, the ownership and protection of intellectual
property that the joint venture company creates is usually of prime significance
The contribution by a joint venture partners may also in the form of intellectual property.
Joint venture entity continue to use the trademark
11.
12. Exit
Natural expiry in cases where the joint venture was established for a specific
purpose
Mutual consent
IPO
Breach
Transfer of shares by one partner to the other partner or to a third party
Editor's Notes
For instance an invention or a patent for the invention or a design (in the case of a manufacturing JV), or a trademark or trade name or a business format / know-how / trade secret (e.g. Starbucks – Tata JV Coffee chain) or copyright (in the case of film production JVs).