Shares Flashcards
Private Limited company (LTD)
1 page constitution
No memorandum
No articles of association
1 or more directors
If only 1, another person must be secretary
Designated Activity company (DAC)
Memorandum of association
Articles of association
At least 2 directors
Public Limited Company (PLC)
Shares transferable
Memorandum of association
Articles of association
Maybe listed on exchange
Memorandum of association (MOA)
EXTERNAL RULE
Name of company
Statement that members liability is limited
Company objectives
Amount of share capital
Division of capital into shares of a fixed amount
Articles of association
INTERNAL RULES
AGM
Rights attaching of shares
Transfer of shares
Powers+duties of directors
SPECIAL RESOLUTION -75%
Authorized share capital
Total amount of shares a company is authorized to issue
Issued share capital
Nominal value of the shares issued by company to shareholder
Rights issue
Company raises additional capital by giving existing shareholders the right to subscribe to new shares at favorable price
Bonus issue
Capitalization issue
Where existing shareholders are given additional shares at no cost in proportion to existing shares
1 in 7
Scrip dividend
Shareholders offered the option of taking dividends as additional shares in cash
Ordinary shares
Dividend
Surplus on wind up
Cumulative v Non-cumulative
Dividend carried forward or not
Preference shares
Fixed level of dividend
Wind up entitled to repayment of their issued share capital before ordinary shareholders
Debenture
Redeemable
Convertible
Unquoted shares
Not listed on stock exchange
Private equity
3 Main factors affecting quoted share price
General investment market factors
Factors affecting a particular sector
Factors affecting individual companies
