Archive | Company Management

Promoter of a Company: Functions, Duties and Liabilities

After reading this article you will learn about:- 1. Meaning of a Promoter 2. Functions of a Promoter 3. Legal Position 4. Rights 5. Duties 6. Liabilities 7. Preliminary Contracts. Meaning of a Promoter: The idea of carrying on a business which can be profitably undertaken is conceived either by a person or by a […]

Promotion of a Company: 4 Stages | Business Management

Following are the main stages of promotion: 1. Discovery of an Idea 2. Detailed Investigation 3. Assembling 4. Financing the Proposition. Stage # 1. Discovery of an Idea: When a person or persons get an idea that there is the possibility of starting a new business to take advantage of the untapped natural resources or […]

How to get a Company Registered ?

In order to get a company registered or incorporated, the following procedure is to be adopted: (A) Preliminary Activities: Before a company is incorporated, the promoter has to take decision regarding the following: 1. To decide the name of the company: A company may adopt any name it likes provided the name does not closely […]

Formation of a Company: 4 Stages | Business Management

The formation of a company is a lengthy process. For convenience the whole process of company formation may be divided into the following four stages: 1. Promotion Stage 2. Incorporation or Registration Stage 3. Capital Subscription Stage 4. Commencement of Business Stage. Stage # 1. Promotion Stage: Promotion is the first stage in the formation […]

Memorandum of Association: Definition, Forms and Contents | Company

After reading this article you will learn about:- 1. Definition of Memorandum 2. Forms of Memorandum 3. Contents or Clauses 4. Importance 5. Alteration. Definition of Memorandum: According to Sec. 2 (28) of the Companies Act, “Memorandum means the Memorandum of Association of a company as originally framed or as altered from time to time […]

Memorandum and Articles of Association: Difference | Company

This article will help you to differentiate between memorandum and articles of association of a company.  Difference # Memorandum: 1. Subject Matter: It is the charter of the company which defines its objects and powers. 2. Importance: Every company must have its own memorandum of Association. It is a must for getting a company registered. […]

3 Important Documents of Company

This article throws light upon the three important documents of a company. The documents are:- 1. Memorandum of Association 2. Articles of Association 3. Prospectus. Document # 1. Memorandum of Association: Memorandum of Association of a Company is one of the most important documents required to be filed with the Registrar of Companies at the […]

Conversion of Shares into Stock

A company may, if so authorised by its Articles, convert all or any of its fully paid-up shares into stock, and reconvert that stock into fully paid-up shares of any denomination. So every ‘stock’ is a ‘share’ while every ‘share’ may not be a ‘stock’. The method of conversion of shares into stock is given […]

Share Issued by a Company: Meaning and Kinds

After reading this article you will learn about the meaning and kinds of shares issued by a company. Meaning and Definition of Shares: A share is the interest of a shareholder in a definite portion of the capital. Section 2 (46) of the Act defines a share as, “A share in the share capital of […]

Difference between Share and Stock

This article will help you to differentiate between share and stock. Difference # Share: 1. Nominal values: Share has nominal value. 2. Fully paid-up: Share need not necessarily be fully paid-up. 3. Transferability: It is transferable as a whole. 4. Distinctive number: It has distinctive number by which it is distinguished from other shares. 5. […]