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Rough Draft Accounts 1

This document is a rough draft submitted by Amisha Prakash for a course on principles of accounting and auditing. It discusses types of share capital for companies under Indian law. There are three main types of shares - deferred shares, preference shares, and equity or ordinary shares. Preference shares have priority over ordinary shares for dividend and repayment of capital. Equity shares are the most common and provide voting rights and rights to dividends. The draft outlines the key legal provisions governing shares from the Companies Act of 1956 and includes sample case studies. The methodology involved reviewing legal doctrines, books, articles, and websites to research different aspects of share capital for the study.

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Ajay Prakash
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40 views4 pages

Rough Draft Accounts 1

This document is a rough draft submitted by Amisha Prakash for a course on principles of accounting and auditing. It discusses types of share capital for companies under Indian law. There are three main types of shares - deferred shares, preference shares, and equity or ordinary shares. Preference shares have priority over ordinary shares for dividend and repayment of capital. Equity shares are the most common and provide voting rights and rights to dividends. The draft outlines the key legal provisions governing shares from the Companies Act of 1956 and includes sample case studies. The methodology involved reviewing legal doctrines, books, articles, and websites to research different aspects of share capital for the study.

Uploaded by

Ajay Prakash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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“LEGAL ASPECT OF TYPES OF SHARE CAPITAL TO A COMPANY”

ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILENT OF THE COURSE

TITLED-

PRINCIPES OF ACCOUNTING AND AUDIT

Submitted by: Submitted to:

AMISHA PRAKASH MR. Ashok Kumar Sharma

ROLL NO:2005(2nd Semester)

B.B.A .LL.B,CNLU,PATNA

Academic session-2018-2023

CHANAKYA NATIONAL LAW UNIERSITY

Nyaya Nagar ,Mithapur,Patna 80001


INTRODUCTION

Share capital denotes the amount of capital raised by the issue of shares, by a
company. It is collected through the issue of shares and remains with the company
till its liquidation.

Share capital is owned capital of the company, since it is the money of the
shareholder and these shareholder are the owners of the company. The total share
capital is divided into small parts and each part is called a share. Share is the
smallest part of the total capital of a company. The amount of share capital a
company reports on its balance sheet only accounts for the initial amount for which
the original shareholders purchased the shares from the issuing company. Anyprice
differences arising from price appreciation/depreciation as a result of transactions
in these secondary market are not included.

For example, suppose ABC Inc. raised $2 billion from its initial public offering.
Over the next year,the total value of its shares increases to $5 billion. In this case,
the value of the share capital is still only $2 billion because ABC Inc. had received
only $2 billion from the sale of its securities to the investing public.

RESEARCH QUESTIONS

1) What are the types of share?


2) Process of allotment in terms of contract Act?
3) What are the legal provision of shares in he companes act 1956?

HYPOTHESIS

Share capital is owned capital of the company, since it is the money of the
shareholder and the shareholder are the owners of the company.

CHAPTERISATION

1) INTRODUCTION
1.1) Features of Share Capital
1.2) Types of Share Capital
2) KINDS OF SHARES
2.1) Deferred Shares
2.2) Preference Shares

2.3) Equity or ordinary shares ; a) With voting rights b) Differential rights

3) Distinction between the Preference shares and equity shares.

4) MEANING OF UNDERWRITING

5) SECTIONS OF THE COMPANIES ACT 1956

5.1) SECTION 77
Case law; Bisakha Sales Pvt Ltd, Kolkata vs Assessee

5.2) SECTION 79

5.3) SECTION 113

5.4) SECTION 114

5.5) SECTION 81
Case law; Sree Ayannar spinning and waiving mills limited Vs.V.V.V Rajendran

Nanalal Zaver v. Bombay Life Assurance Co. Ltd

6) CONCLUSION

RESEARCH METHODOLOGY

Mostly doctrine sources and primary method of research was adopted in the
making of this project.

Few primary and secondary methods were used. Some literary works and books
and articles were referred and the interent through various websites were use
extensively for the collection of data which was required for the study needed for
this research.

BIBILOGRAPHY

The following sources were consulted by the researcher to complete this rough
proposal;

WEBSITES;
 https://www.jstor.org/stable/27878558
 https://www.lawteacher.net/free-law-essays/business-law/securities-and-
exchange-board-of-india-business-law-essay.php
 http://shodhganga.inflibnet.ac.in/bitstream/10603/67315/11/11_summary%2
0and%20conclusions.pdf
BOOKS;
1) LexisGreen Smart Pack: Law Books and Bare Acts
2) Accountancy part 2; TS Grewal

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