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Adobe Scan 19 Sep 2022
Adobe Scan 19 Sep 2022
Company Accounts--
Difference between
Preference Shares and Equity Shares 9.19
and at Premium
Accounting of Issue of Shares for Cash at Par 9.30
Oversubscription of Shares 9.43
Undersubscription of Shares 9.49
Calls-in-Advance
Accountingof Cals-in-Arrears and 9.58
Other than Cash
Issued for Consideration
Accounting of Shares Shares
9.64
and Reissue of Forfeited
Procedure and Accounting ofForfeiture 9.103
Allotment
Concept ofPreferential 9.103
Placement of Shares 9.104
Concept of Private
Concept of Sweat Equity 9.104
Stock Option Plan (ESOP)
.Concept ofEmployees
cOMPANY
CHARACTERISTICs
(FEATURES) OF A
MEANING AND
Companies Act.
(ii) Separate Legal Entity: A company is an artificial person having a legal entity separate
from its shareholders
(iii) Artificial Person: In the eyes of law it is an artificial person. It can Own property, enter
into contract, conduct business, sue or be sued for its debts and actions.
is not
(v Perpetual Existence: A company has a perpetual succession, i.e., its existenceThe life
affected by the death, lunacy or bankruptcy of its members or shareholders.
of a company comes to an end, only by winding up through the process of law.
(v) Limited Liability: Liability of its membersislimited to the value ofshares subscribed
by them or amount guaranteed to be paid at the time of winding up in the case of
companies limited by guarantee. However, in case of companies incórporated with
unlimited liabilities, liability of members is unlimited.
(vi) Transferability of Shares: Shares of a company are freely transferable in the case of
companies listed on a Stock Exchange. In the case of unlisted companies and private
-
HStability of the Itis affected by death, retirement or insolvency Shareholder's death, insolvency or transfer of
Business of partners. shares do not affect continuity ofthe company.