sections Flashcards
Company means a company Incorporated under this act or any other previous company law
Section 2(20) of companies act 2013
registration of partnership is not compulsory under
Indian partnership act 1932
maximum number of partners in a partnership firm
Partnership act does not prescribe maximum number of partners in a firm.
companies act 2013 section 464 (central govt)- 100 partners
rule 10 of companies (miscellaneous) rules, 2014- 50
As a result, a partnership form cannot have more than 50 partners
The firm is unable to pay its debts
Insolvency act will apply
partnership deeds should be drafted and prepared as per
Provisions of the stamp act
this act categorises share capital of a company into preference shares and equity shares
Section 43 of companies act 2013
balance sheet of the company is prepared in the form prescribed
part 1 of schedule 3 of companies act 2013
Authorised or nominal or registered capital
section 2(8)
it is stated in the memorandum of association .
It maybe more or equal to issued share capital.
Issued capital
section 2(50) of companies act 2013
can be less than or equal to authorised capital .
Subscribed capital
section 2(86) of companies act 2013
that part of issued capital, which is issued for cash or for consideration other than cash .
Includes shares issued for subscription and subscribed and shares subscribed by signatories to the memorandum of association
Called up share capital
section 2(15)
Paid up share capital
section 2(64)
paid up share capital = Called up share capital- calls in arrears
Issue of shares at a discount is not allowed
Section 53 ,companies act 2013
however, section 54 allows issue of shares at a discount, when they issued as sweat equity shares.
minimum application money should be 5% of the nominal value of the share or such other percentage or amount as prescribed by SEBI
section 39(2) of companies act 2013
IMPORTANT:
SEBI prescribes that application money should not be less than 25% of the issue price .
The companies act 2013 section 52(1) requires the amount of premium received on securities to be credited to securities premium account.
It is a capital receipt.
Main head shareholders funds.
subhead resolves in surpluses .
Section 52(2) restricts the use of amount received as securities premium to the following purposes:
- issue of fully paid bonus shares to the members.
- Writing of preliminary expenses.
- Writing off the expenses of commission paid or discount allowed on issue of securities or debentures of the company.
- Providing for premium payable on redemption of redeemable preference shares or any of the debentures of the company.
- In purchasing its own shares or other securities under section 68.
section 39(1) permits companies to decide minimum subscription. however, SEBI prescribes minimum subscription to be 90% of the shares issued
Private placement
Section 42 of companies act 2013
Sweat Equity
section 2(88) of companies act 2013
Sweat equity shares are allowed to be issued at discount by section 54 of companies act 2013
debenture includes debenture stock, bones or any other instrument of the company evidencing a debt, whether constituting a charge on the assets of the company or not
Section 2(30) of companies act 2013
Accounting standard 16
borrowing cost prescribes that the loss and issue of debentures be written off in the year which it is incurred, i.e. In the ear in which debentures are allotted.
