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Chapter 3 – Issue of Shares.

08 Dec 2020 10:49 am

Chapter 3, Issue of Shares, SP, secretarial practice, hsc, Maharashtra board, new edition, ebalbharathi solution,

Answer in one sentence.

1.When does transmission of share take place?

SOLUTION

Transmission of share takes place after the death, insolvency, or insanity of the shareholder. Parties involved in transfer.

2.Name the parties involved in transfer of shares.

SOLUTION

The parties involved in the transfer of shares are Transferor and Transferee.

3.What is the time limit to issue share certificate on allotment of shares?

SOLUTION

The time limit to issue a share certificate on the allotment of shares is of maximum 2 months.

4.What is the time limit for filing Return of Allotment with the Registrar on allotment of shares?

SOLUTION

The time limit for filing Return of Allotment with the Registrar is 30 days after the allotment of shares.

5.When can a company forfeit shares?

SOLUTION

When the shareholder fails to pay the full amount of share which he agreed to pay in installments, the company can forfeit his shares.

6.What is a share certificate?

SOLUTION

A share certificate is a document issued by the company evidencing that the person named in the certificate is the owner of the number of shares of the Company as specified in the Certificate.

7.What is the minimum application money to be collected by company as per the Companies Act?

SOLUTION

As per the Companies Act, the minimum application money to be collected by the company is 25% of the nominal value of shares.

8.With whom should the prospectus be filed before issuing it to the public?

SOLUTION

 Before issuing it to the public, a copy of the prospectus must be filed with the Registrar of Company (ROC).

9.What is meant by private placement?

SOLUTION

If a company offers shares to a selected group of investors, not exceeding 200 to raise capital is called private placement.

10.To whom is Sweat Equity Shares offered by a company?

SOLUTION

Sweat Equity Shares is offered to its Directors or Employees at a discount, by a company.

11.To whom can a company issue Bonus Shares?

SOLUTION

The company can issue Bonus Shares to its existing equity shareholders.

12.What is the subsequent issue after IPO called as?

SOLUTION

The subsequent issue after Initial Public Offer (IPO) is called as Further Public Offer (FPO)

13.Name the method under which the issue price of shares is fixed through a bidding process.

SOLUTION

The method under which the issue price of shares is fixed through a bidding process called as ‘Book Building Method’.

14.What is Public Issue?

SOLUTION

Shares offered to public by a company through the prospectus, is called as a public issue.

15.Name the capital which is mentioned in the capital clause of Memorandum of Association.

One line Answer

SOLUTION

The capital which is mentioned in the capital clause of the Memorandum of Association is called as ‘Authorised Capital.


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