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Depositories Act 1996 notes : Definitions under depositories act and salient features of depositories act 1996, dematerialization of securities. QUESTION: Discuss the main features of Depositories Act, 1996? OR Write a note on Depositories Act, 1996. Answer: DEPOSITORIES ACT 1996: This Act came into force on September 20th, 1995 and extends to the…
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Leverage notes: Operating leverage, Financial leverage, Composite or combined leverage. QUESTION: Differentiate between Financial risk and Business Risk? Answer: BUSINESS RISK: Business risk is also known as operating risk. It implies uncertainty in profits or danger of loss leading to shut down of that business. These risks may arise due to future uncertainties. Example: FINANCIAL…
Sources of finance notes: Long term sources, short term sources, innovative sources of finance, commercial papers etc. QUESTION: What is commercial paper? How is it different from debenture? Discuss the regulations applicable to commercial papers? ANSWER: COMMERCIAL PAPER Commercial paper represents unsecured promisor notes issued by the firms to raise the short-term funds. The maturity…
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ADVANTAGES AND DISADVANTAGES OF INCORPORATION INCORPORATION OF COMPANY Incorporation is done by getting the company registered with the Registrar of Companies. The required fee for registration is paid and the certificate of Registration is obtained from the Registrar of Companies. The company becomes an entity only after it is registered. It is, therefore, said that…
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PROCEDURE FOR ONLINE REGISTRATION OF A COMPANY : The steps required for online registration of company. PROCEDURE FOR ONLINE REGISTRATION OF A COMPANY To register a company, you need to first apply for a Director Identification Number (DIN) which can be done by filing e-Form for acquiring the DIN. You would then need to acquire…
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Need of registration of company: Benefits of registration of company; importance of registration of company. REGISTRATION OF COMPANY Registration of company refers to registering the company with the registrar of companies under the Companies Act in force. It means giving birth to the company in the eyes of the law. Registration of company gives legal…
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Certificate of incorporation is conclusive evidence comment. The statement that ‘A certificate of incorporation is conclusive evidence that all the requirements of the Companies act have been complied with’ is very true. Certificate of incorporation is the certificate granted to public as well as private company to recognise its existence in the eyes of law….
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INCORPORATION OF COMPANY IN COMPANY LAW: Stages of incorporation or formation of company. INCORPORATION OF COMPANY Incorporation is done by getting the company registered with the Registrar of Companies. The required fee for registration is paid and the certificate of Registration is obtained from the Registrar of Companies. The company becomes an entity only after…
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DIFFERENCE BETWEEN PUBLIC AND PRIVATE COMPANY UNDER COMPANIES ACT 2013 PRIVATE COMPANY: Section 2(68) of the Companies (Amendment) Act, 2015 defines a Private Company as a company which has a minimum paid up capital as may be prescribed, and by its articles: (i) restricts the rights of its members to transfer of share, (if it…
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CONVERSION OF PUBLIC COMPANY INTO PRIVATE COMPANY AS PER COMPANIES ACT 2013 PUBLIC COMPANY According to the Companies Act of 2013, a company that is listed on a stock exchange and is able to offer its securities to the general public is referred to as a public company. The company must launch an IPO in…
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