surrender of shares

SURRENDER OF SHARES

When a shareholder of a company voluentary gives up his shares in favour of the company,he his said to have surrendered them to the company.the company act does not contain any provision relating to the surrender of shares and table a gives of power to the comapny to accept the surrender.


ISSUE OF SWEAT EQUITY SHARES (on discount)

Meaning of sweat equity shares, for the purposes of the expression 'sweat equity shares' means shares issued at a dicount or for consideration other then cash for providing know how or making available rights in the nature of ittlectual property.


DIVIDENDS

One of the main objects of commercial enterprises is to earn profits which are distributed among shareholders by way of 'devidend'. the companies act however does not define the term devidend.


RULES REGARDING DIVIDEND


1.Resolution at the annual genral meeting.


2.Payment of dividend in propotion to paid up capital.


3.dividend to be paid in only out of profits.


4.unpaid dividend to be transfered.


5.Payment of unpaid dividend.


6.right to devidend.


7.penalty for defaulting directers.