Borrowed Capital - Law Dictionary Search Results
Home Dictionary Name: borrowed capitalBorrowed capital
Borrowed capital, means funds that lent to a corporation or other entity to finance its operations, such as cash dividends that are declared by a corporation but temporarily retained with stock-holder approval, to provide operating funds, Black Law Dictionary, 7th Edn., p. 179....
Capital employed
Capital employed, the expression 'capital employed' is not a term of art nor is it an expression having a fixed connotation or meaning but it is susceptible of varied meanings, including or excluding short-term borrowings or long-term borrowings, whether of all categories or of any particular category or categories depending on its environmental context, Lohia Machines Ltd. v. Union of India, (1985) 2 SCC 197: (1985) 2 SCR 686: AIR 1985 SC 421 (432). [Income-tax Act, 1961, s. 80(j)]...
Borrowing powers
Borrowing powers. Most public bodies are possessed of borrowing powers, but the terms of the Act conferring the power to borrow must be strictly pursued, see Att.-Gen. V. De Winton, (1906) 2 Ch 106; Rex v. Locke, (1910) 2 KB 201.A company under the (English) Companies Act, 1929, has no power to borrow money unless the provision is contained in the Memorandum of Association, but it has an implied power to borrow money and give security therefor for the purposes of its business, General Auction Estate Co. v. Smith, (1891) 3 Ch 432. If the money borrowed is beyond the company's powers the excess is void, Wenlock v. River Dee Co., (1885) 10 AC 354. And see Re Harris Calculating Machine Co., (1914) 1 Ch 920, as to the lender's right of subrogation to creditors who have been paid with the proceeds of the void loan. See also (English) Companies Clauses Consolidation Act, 1845 (8 & 9 Vict. c. 16), ss. 38 et. Seq.; ASSOCIATION, MEMORANDUM OF....
Borrowing members' resolution
Borrowing members' resolution, A resolution is a borrowing members' resolution when it has been passed by a majority of the borrowing members of the building society voting either in person or by proxy on a poll on the resolution at a meeting of which notice specifying the intention to move the resolution as a borrowing member's resolution has been duly given, or in a postal ballot on the resolution of which notice specifying that the resolution will not be effective unless it is passed as a borrowing member's resolution has been duly given, Halsbury's Laws of England, Vol. 4(2), 4th Edn., Para 827, p. 517....
Capital
Capital [fr. Capitalis; caput, Lat.]. The corpus of property of any description which may or may not be the source of a periodical or other return (fructus, produce or income). The word 'capital' when employed in Company Law is used in different senses. Nominal capital is the capital of a company so stated for the purposes of division into shares. It implies nothing more than that the company is possessed of money or assets of a stated value at the company's own valuation which may be, and often is, exaggerated or illusory. Working capital means the amount employable for the purposes of a company or any other undertaking or business. See ALTERATION OF CAPITAL, COMPANY, PROSPECTUS, DIRECTORS. In the Settled Land Act, 1925, capital money arising under the Act means capital money arising under the powers or provisions of that Act or Acts which it replaces, receivable for the purposes of a settlement and includes securities representing capital money. Elaborate provisions are contained in ...
capitalization
capitalization 1 : the act or process of capitalizing [ of earnings] 2 : a sum resulting from a process of capitalizing ;esp : paid-in capital at capital [inadequate ] 3 : total capital liabilities of a business including both equity capital and debt capital NOTE: Equity capital is considered a liability because the investors may recall some or all of it (as by redeeming stock). Inadequate capitalization of a business is considered by courts in cases dealing with equitable subordination of creditors or piercing the corporate veil. 4 : the total par value or the stated value of no-par issues of authorized capital stock ...
Borrower
Borrower, means any person who has been granted loan or any other credit facility by a credit institution and includes a client of a credit institution [Credit Information Companies (Regulation) Act, 2005 (30 of 2005), s. 2(b)]--Means any person who has been granted financial assistance by any bank or financial institution or who has given any guarantee or created any mortgage or pledge as security for the financial assistance granted by any bank or financial institution and includes a person who becomes borrower of a securitisation company or recon-struction company consequent upon acquisition by it of any rights or interest of any bank of financial institution in relation to such financial assistance. [Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, s. 2(1) (f)] The expression 'borrower' in s. 7 need not be given a restricted meaning merely because the Act applies to all communities. Hence a father who is the Karta of the Joint fa...
capitalize
capitalize -ized -iz·ing 1 a : to convert into capital [ the company's earnings] b : to treat as a capital expenditure rather than an ordinary and necessary expense [the cost of the merger must be capitalized] 2 a : to compute the present value of (an income extended over a period of time) compare amortize b : to convert (a periodic payment) into an equivalent capital sum [capitalized annuities] 3 : to supply capital for [had capitalized the business with her own savings] ...
Borrowed money
Borrowed money, term 'borrowed money' must be construed in its natural and ordinary meaning and implies a real borrowing and a real lending, K.M.S. Lakshmanier v. CIT, AIR 1953 SC 145 (147): 1953 SCR 1057: (1953) 23 ITR 202. [Excess Profits Tax Act, 1940 Sch II R. 2A]...
Capital and revenue receipt
Capital and revenue receipt, distinction between revenue and capital in the law of income tax is fundamental. Tax is ordinarily not levied on capital profits; it is levied on income. It is well-settled that sale of stock-in-trade or circulating capital or rendering service in the course of trading results in a trading receipt; sale of assets which the assessee uses as fixed capital to enable him to carry on his business results in capital receipt, C.I.T. v. Maheshwari Devi Jute Mills Ltd., AIR 1965 SC 1974: (1965) 3 SCR 765: AIR 1965 SC 1974 (1976). [Income-tax Act, 1922, s. 4(1)]...
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