Mohit Saxena classes

 Q. What is meant by Holding and Subsidiary Company? And how is it prepared?  Meaning of Holding Company  holding company is also known as the name of controlling company.  A Holding Company refers to a company that has a Subsidiary Company.  For example: Flipkart stake in PhonePe in 2016.But sold in 2022. Meaning of Subsidiary Company  A Subsidiary Company refers to a company whose Board of Directors is controlled by the Holding Company, and the Holding Company holds more than 51% of its shares.  For example: PhonePe  Jaguar Land Rover is the wholly-owned subsidiary of Tata Motors .which was acquired by the Tata Motors in 2008 for 2.3 billion dollars.   In conclusion we can say that a Holding Company / a Controlling Company is formed in the following 2 ways:  1. By establishing control over the Board of Directors of another company. 2. By acquiring more than 51% shares of another company.  Types of Subsidiary Company  A s...

Q.Explain the various methods of redemption of debentures in detail.  Answer:- Redemption of Debentures  Generally, companies issue redeemable debentures, the payment for which is made by the company during its lifetime. one of the following methods can be used For the redemption of debentures by the company,  1. Redemption by Lump Sum Payment: If the company uses this method to redeem its debentures, then the entire amount payable on the debentures is paid in one go.  2. Redemption by Annual Installments: If the company uses this method to redeem its debentures, then a lottery is used to pay the amount due on the debentures, and based on this, the debentures are paid.  Redemption by Annual Installment can also be done in the following two ways:  1. Redemption out of Capital  2. Redemption out of Profit   3.Redemption by purchase in the open market:-the company can also redeem its debentures in the open market by purchasing them at its conv...

  Q1. What do you understand by the redemption of preference shares? Provide legal provisions for the redemption of preference shares.  Answer:- These are shares whose payment is made by the company during its lifetime. They are called redeemable preference shares.  According to Section 55(A) of the Indian Companies Act, 2013, a company can redeem redeemable preference shares, provided it is authorized by its Articles of Association.  It is noteworthy that a company cannot issue preference shares for a period exceeding 20 years.  In simple words, redemption of preference shares means the repayment of preference shares.  Conditions for Redemption of Preference Shares  The main conditions for the redemption of preference shares are as follows:  1. Authorized by Articles of Association:  If a company wants to redeem its preference shares, then in that case, it must be authorized by its Articles of Association.  2. Fully Paid-up Shares:...

Q2:-What is a Debenture? How many types are there? What is the difference between a Shareholder and a Debenture Holder?  Definition of Debenture  A debenture is a certificate of acceptance for a loan taken by a company, on which all terms related to the loan are written.  For example:- • Face Value  • Interest rate  • Date of maturity  • Method of redemption of debenture  By issuing debentures, the company obtains long-term loans. Debenture holders are not members of the company but are creditors. They do not have the right to vote.  Types of Debentures  1. Naked Debentures: These are debentures whose holders are not given any security. They are called Naked Debentures. 2. Mortgage Debentures: These are debentures whose holders are definitely given some security. They are called Mortgage Debentures.  These are the most secure. General companies usually issue these.  3. Redeemable Debentures: These are debentures whose payment is mad...

 Q.What is meant by Share Capital? Describe the various forms of Share Capital. Answer:-Meaning of Share Capital  The money invested in a business is called capital.  And the capital of a company is divided into shares. That is why it is called Share Capital.  Forms / Nature of Share Capital  The various forms of Share Capital are as follows:  1. Authorized Capital: Authorized capital is that part of the company's capital beyond which the company cannot issue more shares.  The company's registration is done with this capital. That is why it is also known as Registered Capital.  This capital is also mentioned in the Memorandum of Association of the company. That is why it is also known as Nominal Capital.  2. Issued Capital: Issued capital is that part of the authorized capital which is issued by the company.  3. Unissued Capital: Unissued capital is that part of the authorized capital which is not issued by the company.  4.Subscribe...

 Q2.What is a share? What is the difference between Equity Share and Preference Share?  Meaning of Share  A share is an indivisible unit of a company's capital, which cannot be broken into smaller pieces and is used by the company to raise capital. Each share has a fixed value, which is called its face value. The one who buys these shares is called a shareholder.  Types of Shares Shares are of the following two types:  1. Equity Share 2. Preference Share 1. Equity Share Equity shares are those shares that are not preference shares.  Equity shares are for those individuals who do not desire a fixed income and prefer to take risks.  Shareholders of this type do not receive the following two priorities.  1.Preference in Dividend  2.Preference in Repayment of Capital  Shareholders of this type receive the following two rights: 1.Right to receive notice of meetings. 2.Right to vote.  2. Preference Share  Preference Shares are for th...

 Q.What is meant by a joint-stock company? What are the characteristics of a company?  Answer:-introduction  Just as partnership emerged to overcome the shortcomings of sole proprietorship, similarly, the company emerged to overcome the shortcomings of partnership because many defects like lack of capital and unlimited liability are found in partnership.  Meaning of Company  A company is a Statutory artificial person. It has a separate legal and permanent existence from its members. It has its own common seal, and the liability of its members is limited.  Definition of Company  According to Section 2(20) of the Indian Companies Act, 2013, a company means a company incorporated or registered under any previous company law or under this Act.  Characteristics of a Company  The main features of a company are as follows 1. Statutory Artificial Person - A company is a statutory artificial person, which is formed by law. 2. Separate Legal Entity - A...