Shares - Law Dictionary Search Results
Home Dictionary Name: sharesShares in public undertakings
Shares in public undertakings. Where the property is vested by charter or Act of Parliament in a body corporate, the shares of the individual corporators in the concern itself are personal, not real, estate; for such shares are merely the rights which each individual possesses as a partner to a share in the surplus profit derived from the employment of the capital, which is a mixed fund, consisting in part of personal chattels, as well as lands and fixtures. Shares in all companies which are within the Companies Acts (see the Companies Act, 1929, s. 62), OR THE Companies Clauses Act, 1845, are personal property; and in many cases of companies incorporated by special Act the shares have been expressly declared to be personal property. Before 1926 the question whether shares in other under-takings were real or personal property turned upon the nature of the shares-that is, whether the holder could call for a specific part of the land itself or only a share of the profits. See now UNDIVID...
Undivided shares in land
Undivided shares in land. Before 1926 a legal estate in undivided shares in land was held by joint tenants, tenants in common, coparceners, and by husband and wife as tenants by entireties (see those titles), but now by the Law of Property Act, 1925, s. 1 (6), a legal estate is not capable of subsisting or of being created in an undivided share inland, and by the same s. 1 (3) and ss. 34 (4), 205, and 1st Sch., Part IV., and cf. TRUST FOR SALE, such shares are to take effect as equitable interests only in the net proceeds of sale and of the rents and profits of the entirety of the land until sale, while the legal estate must be held by trustees for sale of the entire undivided property. It should be noticed that shares only are affected by these provisions. The legal estate in the joint tenancy in the entirety of the trustees for sale persists ex necessitate rei, and this is given effect to by s. 36, as amended, prohibiting severance of the legal estate in joint tenancy and providing f...
Shares
Shares, means shares in the share capital of a company carrying voting rights and includes--(i) any security which entitles the holder to receive shares with voting rights; (ii) stock except where a distinction between stock and share is expressed or implied. [Competition Act, 2002 (12 of 2003), s. 2(v)]Shares, means shares in the share capital of company carrying voting rights and includes--(i) any security which entitles the holder to receive shares with voting rights;(ii) stock except where a distinction between stock and share is expressed or implied;Competition Act, 2002, s. 2(v)....
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...
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...
Bonus shares
Bonus shares, bonus share is an accretion. A bonus share is issued when the company capitalises its profits by transferring an amount equal to the face value of the share from its reserve to the nominal capital. In other words the undistributed profit of the company is retained by the company under the head of capital against the issue of further shares to its shareholders. Bonus shares have, therefore, been described as a distribution of capitalised undivided profit, Standard Chartered Bank v. Custodian, (2000) 6 SCC 427: AIR 2000 SC 1488 (1499). [Companies Act, 1956 Sch I, Table A, Rr. 96 (97)]...
Alteration of share capital
Alteration of share capital. Under the (English) Companies Act, 1929, the share capital of a company may be altered by increase (s. 53), consolidation or division, conversion of shares into stock and reconversion or cancellation of unissued capital (s. 50), or redemption of redeemable preference shares (s. 46). The alteration must be authorized by the Articles, and the memorandum modified. A company cannot make an original issue of stock (Home & Foreign Investment and Agency Co., (1912) 1 Ch 72, and subject to confirmation by the Court a company may reduce its capital by special resolution for reducing share capital and consequential alteration of the memorandum. The words 'and reduced' need not be added to the name of the company unless the Court so orders (ss. 55-60). As a rule in all these cases the alteration must be notified to the Registrar of Joint Stock Companies (s. 5), and, in the case of reduction, registered by him (s. 58)....
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)....
Forfeiture of shares
Forfeiture of shares. The number of shares forfeited by a limited company must be stated in the annual return (Companies Act, 1929, ss. 106, 110), and see Articles 23 to 29 of Table A., which enable directors to forfeit shares of a member failing to pay calls or instalments or any other sum payable in respect of a share, see Hopkinson v. Mortimer, Harley & Co., (1917) 1 Ch 646....
Member, shareholder and holder of a share
Member, shareholder and holder of a share, the scheme of the Indian Companies Act, 1913, shows that the words 'member', 'shareholder' and 'holder of a share' have been used interchangeably. The words 'holder of a share' are really equal to the word 'shareholder', and the expression 'holder of a share' denotes, in so far as the company is concerned, only a person who, as shareholder, has his name entered on the register of members, Howrah Trading Co. Ltd. v. Commissioner of Income Tax, AIR 1959 SC 775: (1959) Supp 2 SCR 448....
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