Share And Debenture - Law Dictionary Search Results
Home Dictionary Name: share and debenture Page 1 of about 18 results ( seconds)Share and debenture
Share and debenture, 'Share' has been defined in s. 2(46) of the Companies Act to mean a share in the share capital of a company which in turn would mean that it would represent contribution of the shareholder towards the share capital of the company. On the other hand, a debenture is an instrument of debt executed by the company acknowledging its receipt to repay the same at a specified rate and also carrying an interest. It is in sum and substance a certificate of loan or a bond evidencing the fact that the company is liable to pay a specified amount with interest and although the money raised by the debentures becomes a part of the company's capital structure yet it does not become a share capital. In any event, a debenture would not come within the purview of the definition of goods, inasmuch as, although the shares and stocks are included in the definition of goods but debentures are not, R.D. Goyal v. Reliance Industries Ltd., (2003) 1 SCC 81 (89).Sponte virum fugiens mulier et a...
Prospectus
Prospectus, giving complete information about the school/college which issues it. It is the instrument through which the school/college 'holds out' its contents or 'represent' to the general public interest, Sanjeev Dadhwa v. All India Institute of Medical Sciences, AIR 1995 Del 268.Is a document which invites persons to take shares in a company and sets forth the advantages of the company an advertisement is also a prospectus, Paramatha Nath v. Kali Kumar, AIR 1925 Cal 714: (1925) ILR 51 Cal 440.Prospectus, is defined by s. 380 of the (English) Companies Act, 1929, as any prospectus, notice, circular, advertisement, or other invitation offering to the public for subscription or purchase any shares or debentures of a company. By s. 35 of the Act every prospectus issued by or on behalf of a company or engaged or interested in its formation, must state the matters specified in Part I. of the 4th Schedule and set out the reports specified in Part II. of that Schedule, subject as to both p...
Debentures and shares
Debentures and shares, 'share' has been defined in, s. 2(46) of the Companies Act, 1956 mean a share in the share capital of a company which in turn would mean that it would represent contribution of the shareholder towards the share capital of the company. On the other hand, a debenture is an instrument of debt executed by the company acknowledging its receipt to repay the same at a specified rate and also carrying an interest. These are simply an instrument of acknowledgement of debt by the company whereby it undertakes to pay the amount covered by it and till then it undertakes further to pay interest thereon to the debenture-holders, R.D. Goyal v. Reliance Industries Ltd, (2003) 1 SCC 81 (89)....
Debenture stock
The debt or series of debts collectively represented by a series of debentures a debt secured by a trust deed of property for the benefit of the holders of shares in the debt or of a series of debentures By the terms of much debenture stock the holders are not entitled to demand payment until the winding up of the company or default in payment in the case of railway debentures they cannot demand payment of the principal and the debtor company cannot redeem the stock except by authority of an act of Parliament...
Offer of shares to the public
Offer of shares to the public. Shares and debentures of limited companies, when allotted or agreed to be allotted with a view to sale to the public, must when offered to the public comply with the provision of s. 38 of the Companies Act, 1929; and see PROSPECTUS. Further, any offer in writing to any member of the public of any shares for purchase except as provided, i.e. (a) shares dealt in with permission of any recognised stock exchange in Great Britain; (b) shares allotted with a view to sale to the public; and (c) offers to persons doing regular business in the purchase or sale of shares, must comply with s. 356 of the same Act; s. 356 also absolutely prohibits 'share pushing,' i.e., any person going from house to house (not being an office used for business purposes) offering shares for subscription or purchase to the public or any member of the public...
Scrip
Scrip, a certificate or schedule; also evidence of the right to obtain shares or debentures in a limited company, sometimes called 'scrip-certificate,' generally part paid and exchangeable for the certificate of share or the debenture upon payment in full. Scrip to bearer appears to be negotiable and to pass by delivery, see Goodwin v. Robarts, (1875) LR 10 Ex 337; 1 App Cas 476; Rumball v. Metropolitan Bank, (1877) 2 QBD 194.1. A document that entitles the holder to receive something of value 2. Paper money issued for temporary use, Black's Law dictionary, 7th Edn., p. 1349....
Private company
Private company. A 'private company' is defined by s. 26 of the (English) Companies Act, 1929, as follows:-Company privately formed by members who subscribe the whole of the capital among them-selves.26. --(1), For the purposes of this Act the expression 'private company' means a company which by its articles-(a) restricts the right to transfer its shares; and(b) limits the number of its members to 50, not including persons who are in the employment of the company and persons who, having been formerly in the employment of the company, were, while in that employment and have continued after the determination of such employment to be, members of the company; and(c) prohibits any invitation to the public to subscribe for any shares or debentures of the company.(2) Where two or more persons hold one or more shares in a company jointly they shall, for the purposes of this section, be treated as a single member.S. 27, ibid., provides that if a company alters its articles so that the provisio...
Deceit
Deceit [fr. deceptio, Lat.], fraud, cheat, craft, or collusion used to deceive and defraud another. In an action of deceit the plaintiff must prove that the defendant has made a false statement, knowing that it was false or without any belief in its truth or without caring whether it was true or not, and intending that the plaintiff should rely upon it and that the statement was relied upon by the plaintiff and caused damage; non-disclosure may be fradulent, see Suppressio veri, suggestio falsi,' and Cackett v. Keswick, (1902) 2 Ch 456, and Christine Ville Rubber Estates, (1911) 28 TLR 38, and CONCEALMENT [Smith v. Chadwick, (1884) 9 AC 187, and Dery v. Peek, (1889) 14 App Cas 337]. Under the (English) Companies Act, 1929, s. 37, a special action for deceit will lie at the instance of any subscriber for shares or debentures who has subscribed for these on the faith of a prospectus inviting him to subscribe against any director, or person named or referred to as a director in the prospe...
Investment company
Investment company, an 'investment company' was defined in s. 109(i) of the Act as meaning a com-pany whose business consisted wholly or mainly in the dealing in or holding of investments. The statutory percentage in the case of an investment company (whether Indian company or not) was fixed at 90 per cent by S. 109 (iii)(1) of the Act. It is significant that even in this Act, the restricted definition of the expression 'investment company' as appearing in s. 372(11) of the Companies Act, 1956 was not adopted by the Legislature. By Finance Act, 1966, which came into force with effect from April 1, 1966, the meaning of the term 'investment company' was clarified by amending clause (ii) of S. 109 and providing therein that investment company meant a company whose gross total income consisted mainly of income which, if it had been the income of an individual, would have been regarded as unearned income, Nawn Estate (P) Ltd. v. CIT, AIR 1977 SC 153 (161): (1977) 1 SCR 798: (1977) 1 SCC 7.I...
Transfer
Transfer, a permanent alienation is a transfer and a permanent alienation includes the several kinds of transfers, namely, sale, exchange or gift, Syed Jalal v. Targopal Ram Reddy, AIR 1970 AP 19.Transfer, cannot have the widest comprehension, and does not indicate or include compulsory transfer or forced transfer, like court auction sale, Kharva Gigabhai Mavji v. Soni Jagjivvan Kanji, 1979 (20) Guj LR 256.Transfer, connotes, normally, between two living persons during life; will take effect after demise of the testator and transfer in that perspective becomes incongruous, State of West Bengal v. Kailash Chandra Kapur, (1997) 2 SCC 387.Transfer, Decrees which would have the effect of extinguishing the tittle of the holder and nesting the same in some one else though not falling within the ordinary meaning of the phrase 'transfer of property' would be 'transfers' within the meaning of the term as used in ss. 4 and 5, Jagdish v. State of Madhya Pradesh, AIR 1993 MP 132. [See M.P. Ceiling...
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