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What happens to your shares after bankruptcy of Bombay Company Inc?
In the case of a bankruptcy of Bombay Company Inc., the company's assets would be liquidated to repay its creditors. Any remaining funds would be distributed among the shareholders based on their proportionate ownership. However, it is important to note that the value of the shares may become significantly diminished or even worthless, as the company's financial obligations are prioritized over the interests of shareholders in a bankruptcy proceeding.
What is issue of shares?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
What is issue of right shares?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
What is issue of right?
The right shares are the shares which a company issues to its existing shareholders. If e.g., a commercial bank in order to comply with its Central Bank's request of raising paid up capital to a certain amount decides to issue further shares, then these shares will first be offered to its existing shareholders. In case of no response from the existing shareholders, they can then be offered to others.
What are the disadvantages of preference shares?
One disadvantage of preference shares is that they have limited voting rights. Preference shareholders typically have the right to vote only on matters that directly affect their rights, such as changes to the dividend policy or the issuance of additional preference shares. Another disadvantage is that preference shareholders do not have the same potential for capital appreciation as common shareholders. In case of liquidation, common shareholders are paid after all debt holders and preference shareholders are paid, which means preference shareholders may not receive the full value of their investment.
How does a company limited by guarantee differ from a company limited by shares?
A company limited by guarantee does not have shareholders or share capital; instead, it has members who guarantee to contribute a predetermined amount toward the company's liabilities if it is wound up. This structure is often used for non-profit organizations, charities, or clubs. In contrast, a company limited by shares has shareholders who own shares in the company and are entitled to dividends and a share of the profits. The liability of shareholders is limited to the unpaid amount on their shares, protecting personal assets in case of the company's debts.
What is the difference between return on total equity and return on common equity?
Total equity and common equity are separate things where there is preference shares are also issued in that case only shares issued to common share holders are included in common equity while in total equity shares issued to preference shareholders are also included.
The Articles of a company provided that the shares of a member who became bankrupt would be offered for sale to other shareholders at a certain price. Is the provision binding on the shareholders?
The facts of the given problem are based on the decided case of Bore land Trustee vs. Steel Bros. & Co. Ltd., in which case, the provisions in the Articles were held to binding on the members. It was held that 'Shares having been purchased on these terms and conditions, it is impossible to say that those terms and conditions are not to be observed". Thus, since Articles constitute a binding contract between the Company and its members, the shareholders shall be held bound by the stated provision in the Articles.
Difference between amalgamation and external reconstruction?
Difference between Amalgamation and ReconstructionDifference between Amalgamation and ReconstructionThe difference between amalgamation and reconstruction is that amalgamation involves the blending of two or more different concerns, and not merely the continuance of one concern; reconstruction implies the carrying on of an existing business in some altered form, so that persons interested in the business may remain substantially the same.(b) Dissenting ShareholderIn relation to a take-over bid, 'dissenting shareholder' means a shareholder who has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract [Sec. 395(5)].Thus, a shareholder can be called a 'dissenting shareholder' when he has not assented to the scheme or contract and any shareholder who has failed or refused to transfer his shares to the transferee company in accordance with the scheme or contract.ReconstructionlAmalgamationby Sale of Shares [Section 395]Sale of shares is the simplest process of amalgamation or take-over. It involves take-over without following the Court procedure under Sections 391 and 394. Shares are sold and registered in the name of the purchasing company or on its behalf. The selling shareholders receive either compensation or shares in the acquiring company. In case certain shareholders dissent, section 395 contains provisions for the compulsory acquisition by the transferee company of shares of the dissenting minority. The shares may be acquired on the same terms on which the shares of the approving shareholders are to be transferred to it. This will prevent the minority shareholders from demanding too high a price for their shares.Secti0!l 395 lays down as follows:1. Where the transferee company has offered to acquire the shares or any class of shares of the transferor company, the scheme or contract embodying such offer has to be approved by the shareholders concerned within four months. The approval must be given by the holders of not less than 9 /lOths in value of the shares whose transfer is involved. In computing 9/10ths value of shares, the shares already held by the transferee company or its nominee or subsidiary are excluded.2. If the offer is approved, the transferee company may, at any time within two months of the expiry of the said four months, give a notice to the dissenting shareholders that it desires to acquire their shares. The transferee company is entitled and bound to acquire the shares of dissenting shareholders on the same terms on which the shares of approving shareholders were approved unless on the application of the dissenti~$ shareholders within one month of such notice, the Court orders otherwise.3. If the transferee company already holds in the transferor company shares ofthe class whose transfer is involved, to a value more than l/lOth of the total. (1983J 140 ITR (St.) 2... The transferee company need not wait for the expiry period of four months for serving notice on thedissentient shareholders to acquire the shares-Western Manufacturing (Reading) Ltd., In re [1955J 3 AI
What does Capital Stock 5000 shares-no par value mean?
Par value, sometimes referred to as maturity value is the face value of a stock certificate or bond and sets the price below which the security will not be issued. In the case of a bond, it is the principle amount that is due at maturity or call. In the case of a company's stock, the par value has no relation to the market value of the security and is typically set at $0.01 or $0.001 for US companies (though they can also issue no par value shares). Federally incorporated Canadian companies by contrast can only issue no par value shares. Provincially incorporated companies can issue shares with a par value which can be helpful in tax planning, estate freezes and unique preferred share issues. So the short answer to your question is that the 5,000, simply denotes how many shares you have, but the "no par value" part is for all intents and purposes irrelevant and only means that the shares were initially created with no par value. It's an aspect of the shares that's really only relevant to the company's accountants.
Difference between preference and ordinary shares?
Ordinary shares are those which issue to normal shareholders which are last in payment priority list and only receives dividend in case of profit and liquidity is good. Preference share has preference over payment form common share capital and it receives fixed percentage of interest even in case of loss to business.
How is the book value of a stock determined?
Book value in financial terminology refers to the value of an asset. In case of stocks it can be considered as The net assets of the company / no. of shares For ex: If ABC limited has 100,000 shares and it has net assets of 10,000,000 then the book value of each share of ABC limited would be 100.
