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The effect of a stock dividend is to transfer what?
transfer additional shares of stock in the company to existing shareholders
Do market shares burden the company?
Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.
What is the difference between transfer and transmission of shares?
(1) Transfer of Shares: Meaning: Transfer means transferring the shares on the name of some other person on a voluntary basis. Initiative: The transfer-or and transferee takes initiative. Nature of Action:It is a deliberate action taken by a share holder. Parties: There are two parties i.e. transfer-or and transferee to the transfer of shares. Documents Required: An instrument of transfer has to be duly executed by the transfer-or and transferee. Stamp Duty: It is payable on the market value of shares Right of Refuse: The directors of the company can refuse transfer of shares on certain grounds. Consideration: There must be an adequate consideration for the transfer of shares, unless they are transferred by way of gift. (2) Transmission of Shares: Meaning: Transmission of shares means the passing of property or title in shares by the operation of law froa member to his legal representative on the happening of a certain event like death, insolvency or lunacy. Initiative: The legal heir of the deceased share holder takes the initiative. Nature of Action: It is not deliberate action of a shareholder, but the result of operation of law, after he dies or becomes insane or bankrupt. Parties: The legal heir of the deceased share holder is involved. Documents Required: Certain documents like court order of insolvency, death certificate are required for transmission of shares. Stamp Duty: No stamp duty is payable for transmission of shares. Right of Refuse: Transmission of shares can't be refused, it is under operation of law. Consideration: The question of consideration does not arise in the case of transmission of shares, as it is due to the operation of law.
What is the position of an applicant for shares bofore allotment and after allotment of shares?
Before allotment of shares position is Applicant. He doesnt owner of the company. He do not have any rights on company profits and he is not liable for company liabilities. After allotment of shares he become Share Holder. He has right to get company profits. He is the owner of company. He is liable of company liabilites to the extent of his shares.
How many shares of stock does a company have?
A company does not have a definite number of shares of stock. The company can choose to split the number of shares into any ratio with prior announcement.
Can director of a company transfer all shares to his name?
no.
The effect of a stock dividend is to transfer what?
transfer additional shares of stock in the company to existing shareholders
What is the difference between transmission and transfer?
Transfer of shares is the mode of changing the ownership by sale/gift of his shares in a company by the present holder to a purchaser/donee. Transmission of shares takes place when the ownership passes from one holder to another by operation of law. For example, 'A', the present shareholder of shares in a company dies, the ownership in his shares passes to his legal heirs by law.
Allotment of shares by a company is not a transfer of property by the company in favor of allottees?
Acc. to the basic rule of company law: a co. has a separate and distinct entity from that of its owners, thus, a shareholder is the owner of the company to the extent he holds shares of that co. but he cannot own the property of the co.
How can you contact Manufacturers Hanover trust company transfer agent and registar?
I have 10 shares of SSMC INC. are they worth anything
Do market shares burden the company?
Market Shares depend upon the company prices. If market down then company shares will be down. Then its true that market shares is always burden for the company.
What is the difference between transfer and transmission of shares?
(1) Transfer of Shares: Meaning: Transfer means transferring the shares on the name of some other person on a voluntary basis. Initiative: The transfer-or and transferee takes initiative. Nature of Action:It is a deliberate action taken by a share holder. Parties: There are two parties i.e. transfer-or and transferee to the transfer of shares. Documents Required: An instrument of transfer has to be duly executed by the transfer-or and transferee. Stamp Duty: It is payable on the market value of shares Right of Refuse: The directors of the company can refuse transfer of shares on certain grounds. Consideration: There must be an adequate consideration for the transfer of shares, unless they are transferred by way of gift. (2) Transmission of Shares: Meaning: Transmission of shares means the passing of property or title in shares by the operation of law froa member to his legal representative on the happening of a certain event like death, insolvency or lunacy. Initiative: The legal heir of the deceased share holder takes the initiative. Nature of Action: It is not deliberate action of a shareholder, but the result of operation of law, after he dies or becomes insane or bankrupt. Parties: The legal heir of the deceased share holder is involved. Documents Required: Certain documents like court order of insolvency, death certificate are required for transmission of shares. Stamp Duty: No stamp duty is payable for transmission of shares. Right of Refuse: Transmission of shares can't be refused, it is under operation of law. Consideration: The question of consideration does not arise in the case of transmission of shares, as it is due to the operation of law.
What is the position of an applicant for shares bofore allotment and after allotment of shares?
Before allotment of shares position is Applicant. He doesnt owner of the company. He do not have any rights on company profits and he is not liable for company liabilities. After allotment of shares he become Share Holder. He has right to get company profits. He is the owner of company. He is liable of company liabilites to the extent of his shares.
How many shares of stock does a company have?
A company does not have a definite number of shares of stock. The company can choose to split the number of shares into any ratio with prior announcement.
What are the disadvantages of a private company?
transfer of share is not allowed maximum number of member cannot exceed fifty cannot invite public for subscribing to its shares
What is a person who owns shares in a company called?
A person owning shares in a company is a shareholder.
What are the different modes of acquiring membership?
As person can be a member of a Company bye the following modes or you can say circumstances. In present day corporate scenario there are five different modes of acquiring membership in a company, they are as under:- 1. By Subscribing to Memorandum 2. By application and allotment 3. By Transfer 4. By Transmission 5. By Undertaking to take qualification Shares A brief explanation of the above modes are as follows. 1. By Subscribing to Memorandum: A subscriber to the Memorandum becomes a member on the registration of the Company even though there is no application for shares or allotment. 2. By application and allotment: An application for shares is an offer to take shares. Allotment is acceptance of that offer of the company. When shares are allotted to an applicant, he becomes a member. There is prescribed punishment for those who makes an application in fictitious name to a company for acquiring shares or subscribing any shares to a term which may extend to five years imprisonment. This is to avoid shareholding in the names of fictitious or non existing persons. 3. By Transfer: When a person who purchased the shares from the open market, applies to register his name in the company register of the original share holder and when his name is entered in the register of members, he becomes a member by transfer. 4. By Transmission: When a Share holder is dead and his legal heirs applies for registering their names and when the company entering their name, they become members of the company. 5. By Undertaking to take qualification Shares: A Director who signed an undertaking to take ans pay for the qualification shares is also in the same position as Subscriber of Memorandum. The above are the five modes of acquiring membership of a company under the Companies Act 1956.
