JOINT STOCK COMPANIES

This book is brought up in accordance with the subject of Joint Stock Companies. In this book, the subject matter is expressed in clear way so that each and every reader understand the subject easily. In the book, I clearly mentioned about companies, types of companies, equity shares, preference shares and their advantages, types of shares, types of share capital, order of issue the shares, shares issued at par, shares issued at premium, shares issued at discount, forfeit of shares, re-issue of shares, rights issue, buy-back of shares, bonds, debentures, redemption of debentures, methods of redemption of debentures etc.. Hence, I conclude that readers can gain more knowledge on companies, shares and debentures through this book. I believe that with the help of this book, every reader gets the scope of knowledge which helps them in getting the understanding of Joint stock companies. I wish that this book will win the heart of every user. The main features of the book are simple understanding and key concepts. This book is useful to everyone in Accounts field like students, Accounts executives, Analysts etc… .

 

It is hoped that this will facilitate a better understanding of the subject matter.

 

I welcome any valuable suggestions regarding this book in a better and improved way. Suggestions will be incorporated in the subsequent editions.

 

 

CONTENTS

 

I  COMPANIES

    A. Meaning of company

    B. Meaning of corporation

    C. Difference between company and corporation

    D. Difference between Inc. and Ltd

    E. Characteristics of a company

    F. Statutory books

   G. Types of companies

         i.  Chartered companies

         ii. Statutory companies

        iii. Registered companies

        iv. Limited liability companies

         v. Companies limited by shares

        vi. Companies limited by guarantee

       vii. Un limited companies

      viii. Public ltd

        ix. Private ltd

         x. Difference between public ltd and Pvt ltd

        xi. Holding company

       xii. Subsidiary company

      xiii. Govt. company

        ix. Non-Govt. companies

                  i. Foreign company

                 ii. One person company

 

2. SHARES

        A. Introduction

        B. Types of Shares

              1a. Equity Shares

                       i.  Characteristics

                      ii.  Advantages

                      iii. Disadvantages

              1b. Other type of equity shares

                       i. Blue chip shares

                      ii. Income shares

                     iii. Growth Shares

                     iv. Cyclical shares

                      v. Defensive shares

                     vi. Speculative shares

              2. Preference shares

                     i. Cumulative & Non-cumulative preference shares

                    ii. Participated & Non-participated preference shares

                   iii. Redeemable & irredeemable preference shares

                   iv. Convertible & Non-convertible preference shares

                    v. Deferred shares

         C. Types of Share capital

                        i. Authorized capital

                       ii. Issued capital

                      iii. Subscribed capital

                      iv. Called up capital

                       v. Paid up capital

                      vi. Reserve capital

          D. Order of issuing shares

                    i. Prospectus

                   ii. Application for shares

                  iii. Allotment of shares

                  iv. Calls on shares

          E. Issue of shares at premium

          F. Issue of shares at discount

         G. Forfeiture of shares

         H. Accounting – Issue of shares

           I. Rights issue

                 i Reasons to right issue

                 ii. Advantages of Right issue

         J. Buy-back of shares

               i. Introduction

              ii. What is buy back

             iii. How is buy back

             iv. Conditions to buy back

              v. Notes to not buy back

             vi. Maintenance of registers

            vii. Sources of buy back

           viii. Modes of buy back

             ix. Advantages of buy back

              x. Determination of quantum for buy back

             xi. Accounting treatment – buy back

       K. Redeemable preference shares

              i. Introduction

             ii. Conditions for issue and redemption redeemable pre. shares

            iii. Capital Redemption Reserve

            iv.  Accounting-Redemption of shares & issue on bonus shares

 

3. DEBENTURES

       A. Introduction

       B. Debentures vs Bonds

       C. Bonds and its kinds

       D. Debentures and its types

              i. Registered debentures

             ii. Bearer debentures

            iii. Mortgage debentures

            iv. Naked debentures

             v. Redeemable debentures

            vi. Irredeemable debentures

           vii. Convertible debentures

          viii. Non-convertible debentures

            ix. First debentures

             x. Second  debentures

     E.  Key differences between bonds and debentures

     F. Loan vs Debt

    G. Advantages of Debentures

    H. Requirements of Debentures

     I. Shares vs Debentures

     J. Issue of debentures

          i. Important provisions to issue of debentures

          ii. Issue of consideration for cash

         iii. Issue of consideration for other than cash

         iv. Issue of consideration for collateral security

          v. Accounting treatment – issue of debentures

    K. Redemption of debentures

             i. Introduction

            ii. SEBI on creation of DRR

           iii. Creation of provision for DRR

           iv. Sinking fund method – Accounting treatment

            v. Insurance policy method – accounting treatment

    L. Methods – Redemption of debentures

            i. Conversion

           ii. Rollover

   M. Sources of Redemption

           i. Redemption out of capital

          ii. Redemption out of profits

  N. Conversion or Rollover and Accounting treatment

  O. When to be redeemed

          i. By Annual drawings

         ii. Purchase and cancellation of own debentures

        iii. Accounting treatment