Balbharati solutions for Secretarial Practice [English] 12 Standard HSC Maharashtra State Board chapter 3 - Issue of Shares [Latest edition]

Select the correct answer from the options given below and rewrite the statement.

______ refers to capital made up of Equity and preference shares

Select the correct answer from the options given below and rewrite the statement.

______ capital refers to maximum capital a company can raise by issuing shares.

Select the correct answer from the options given below and rewrite the statement.

______ means shares are offered to the public.

Under _________ method, issue price of shares is based on bidding.

In ________, shares of a company are offered to the public for the first time.

___________ is offered to existing equity shareholders.

Select the correct answer from the options given below and rewrite the statement.

Bonus shares are issued free of cost to ______

Select the correct answer from the options given below and rewrite the statement.

______ are offered to permanent employees, Directors and Officers of a company.

Select the correct answer from the options given below and rewrite the statement.

Under ______, a company offers its securities to a select group of persons not exceeding 200.

Select the correct answer from the options given below and rewrite the statement.

The ______ have the power to allot shares.

Select the correct answer from the options given below and rewrite the statement.

Letter of ______ is sent to applicants who have been given shares by the company.

______ is a proof of title to shares.

Select the correct answer from the options given below and rewrite the statement.

The gap between two calls should not be less than ______

Select the correct answer from the options given below and rewrite the statement.

Company can ______ shares on non-payment of calls.

Select the correct answer from the options given below and rewrite the statement.

Voluntarily giving away one’s share to another person is called as______of shares.

Select the correct answer from the options given below and rewrite the statement.

______ of shares takes place due to operation of law.

Match the pairs.

Match the pairs.

Write a word or a term or a phrase which can substitute the following statement.

Capital collected by way of issue of Equity and Preference shares.

Write a word or a term or a phrase which can substitute the following statement.

Part of issued capital subscribed by investors.

Write a word or a term or a phrase which can substitute the following statement.

Capital that will be collected only at the time of winding up of a company

Write a word or a term or a phrase which can substitute the following statements.

Highest bid price in Book Building method.

Write a word or a term or a phrase which can substitute the following statement.

Offering of shares by a company to the public for the first time.

Write a word or a term or a phrase which can substitute the following statement.

Subsequent issue of shares after an IPO.

Write a word or a term or a phrase which can substitute the following statement.

Pre-emptive right given to existing Equity shareholders to subscribe to new issue of shares by company.

Write a word or term or phrase which can substitute the following statement.

It is also called ‘Capitalisation of Profits’.

Write a word or a term or a phrase which can substitute the following statement.

Appropriation of shares to an applicant.

Write a word or a term or a phrase which can substitute the following statement.

Committee set up to decide the formula for allotment of shares in case of over subscription.

Write a word or a term or a phrase which can substitute the following statement.

Minimum amount to be collected from subscribers within thirty days of issue of prospectus.

Write a word or a term or a phrase which can substitute the following statement.

Document which is a prima facie evidence of ownership of certain shares of a company

Write a word or a term or a phrase which can substitute the following statement.

Penal action taken by company on non-payment of calls.

Write a word or a term or a phrase which can substitute the following statement.

Person to whom transferor is transferring the shares.

Write a word or a term or a phrase which can substitute the following statement.

Transfer of shares due to operation of law.

State whether the following statement is true or false.

Only fully paidup shares can be forfeited.

State whether the following statement is true or false.

The member transferring shares is called as transferor.

Share certificate is issued for partly or fully paid up shares.

State whether the following statement is true or false.

Allotment of shares must be done within one month of receipt of application money.

State whether the following statement is true or false.

Sweat Equity shares are offered to Directors or employees of a company.

State whether the following statement is true or false.

Bonus Shares are issued at a discounted price to the Equity shareholders.

State whether the following statement is true or false.

Floor price is the highest bid price under Book Building method.

State whether the following statement is true or false.

Calls not paid by shareholder is called as calls in arrears.

State whether the following statement is true or false.

Shares not offered to the public for subscription is called as subscribed capital.

State whether the following statement is true or false.

Authorised capital is mentioned in capital clause of Memorandum of Association.

Find the odd one.

Find the odd one.

Find the odd one.

Find the odd one.

Find the odd one.

Complete the sentence.

Share capital refers to capital made up of Equity shares and ____________

Complete the sentence.

Reserve capital is part of ______

Complete the sentence.

Transfer of shares due to death, insolvency or insanity of member is called ______

Complete the sentence.

The two parties involved in transfer of shares are transferor and ______

Complete the sentence.

Voluntarily giving up of shares by a member due to inability to pay calls is called as ______

Complete the sentence.

Company can forfeit only ______ paid shares.

Complete the sentence.

In case the original Share Certificate is torn or mutilated, company can issue ______

Complete the sentence.

In case of transfer of shares, company has to issue to the transferee a new share certificate within ______

Complete the sentence.

Letter sent to applicants for informing them shares are allotted is called as ______

Complete the sentence.

When applications received are more than the number of shares offered, it is called as ______

Complete the sentence.

In Book Building Method, the final price at which shares are offered to investors is called as ______

Complete the sentence.

Shares issued free of cost to existing Equity shareholders is called as ______

Select the correct option from the bracket.

(First time offer of shares, Shares offered to public, Shares offered to existing Equity shareholders, Shares offered to existing employees, Transmission of shares)

Answer in one sentence.

When does transmission of share take place?

Answer in one sentence.

Name the parties involved in transfer of shares.

Answer in one sentence.

What is the time limit to issue share certificate on allotment of shares?

Answer in one sentence.

What is the time limit for filing Return of Allotment with the Registrar on allotment of shares?

Answer in one sentence.

When can a company forfeit shares?

Answer in one sentence.

What is a share certificate?

Answer in one sentence.

What is the minimum application money to be collected by company as per the Companies Act?

Answer in one sentence.

With whom should the prospectus be filed before issuing it to the public?

Answer in one sentence.

What is meant by private placement?

Answer in one sentence.

To whom is Sweat Equity Shares offered by a company?

Answer in one sentence.

To whom can a company issue Bonus Shares?

Answer in one sentence.

What is the subsequent issue after IPO called as?

Answer in one sentence.

Name the method under which the issue price of shares is fixed through a bidding process.

Answer in one sentence.

What is Public Issue?

Answer in one sentence.

Name the capital which is mentioned in the capital clause of Memorandum of Association.

Correct the underlined word and rewrite the following sentence.

Issued capital is the maximum capital which a company can raise by issuing shares.

Correct the underlined word and rewrite the following sentence.

Under Fixed price issue method, the price of shares is fixed through bidding process

Correct the underlined word and rewrite the following sentence:

FPO refers to offering of shares to the public for the first time.

Correct the underlined word and rewrite the following sentence.

Only fully paid up shares can be forfeited.

Correct the underlined word and rewrite the following sentence.

Bonus shares are offered to existing employees of a company.

Correct the underlined word and rewrite the following sentence.

Company enters into an underwriting agreement with the shareholders.

Correct the underlined word and rewrite the following sentence.

Letter of Allotment is sent to applicants when no shares are allotted to them.

Correct the underlined word and rewrite the following sentence.

Duplicate share certificate must be issued within one month from date of application.

Correct the underlined word and rewrite the following sentence.

Call money cannot exceed 5% of nominal value of shares.

Arrange in proper order.

1. Forfeiture of shares.
2. Calls on shares.
3. Allotment of shares.

Arrange in proper order.

1. Share certificate
2. Allotment letter
3. Application form

Arrange in proper order.

1. Return of allotment
2. Application form
3. Minimum subscription

Explain the following term/concept.

Transmission of shares

Explain the following term/concept.

Bonus shares

Explain the following term/concept.

Allotment of shares

Explain the following term/concept.

Employees Stock Option Scheme

Explain the following term/concept.

Surrender of shares

Explain the following term/concept.

Sweat Equity shares

Explain the following term/concept.

Share certificate

Explain the following term/concept.

Authorised capital

Explain the following term/concept.

Forfeiture of shares

Explain the following term/concept.

Paid-up capital

Explain the following term/concept.

Calls on shares

Explain the following term/concept.

Subscribed capital

Explain the following term/concept.

Minimum subscription

Explain the following term/concept.

Transfer of shares

Explain the following term/concept.

Initial Public Offer

Explain the following term/concept.

Blank transfer

Explain the following term/concept.

Further Public Offer

Explain the following term/concept.

Forged transfer

Explain the following term/concept.

Rights Issue

Explain the following term/concept.

Private placement

Study the following case/situation and express your opinion.

Eva Ltd. Company's capital structure is made up of 1,00,000 Equity shares having face value of ₹ 10 each. The company has offered to the public 40,000 equity shares and out of this, the public has subscribed for 30,000 equity shares. State the following in ₹.

1. Authorised capital
2. Subscribed capital
3. Issued capital

Study the following case/situation and express your opinion.

TRI Ltd. Company is newly incorporated public company and wants to raise capital by selling Equity shares to the public. The Board of Directors are considering various options for this. Advise the Board on the following matters :

1. What should the company offer - IPO or FPO?
2. Can the company offer Bonus Shares to raise its capital?
3. Can the company enter into Underwriting Agreement?

Study the following case/situation and express your opinion.

Silver Ltd. Company has recently come out with its public offer through FPO. Their issue was over subscribed. The Board of Directors now wants to start the allotment process. Please advise the Board on:

1. Should the company set up allotment committee?
2. How should the company inform the applicants to whom the company is alloting shares?
3. Within what period should the company issue share certificate?

Study the following case/situation and express your opinion.

Red Tubes Ltd. has made a demand on its shareholders to pay the balance unpaid amount of ₹ 20/- per share (having a face value of ₹ 100) held by them. The company has sent letters asking the shareholders to pay the money to its Bankers within the specified time.

1. Are the shareholders liable to pay ₹ 20 for the shares held by them?
2. Name the letter sent by the company to its shareholders asking them to pay ₹ 20/-
3. What happens if a shareholder fails to pay the money within the specified time?

Study the following case/situation and express your opinion.

X owns 100 shares while Y owns 500 shares of Red Tubes Ltd. The company has asked all its shareholders to pay the balance unpaid amount of ₹ 20. X pays the full money demanded by the company. Y, who is in a bad financial position is unable to pay any money.

1. Can the company forfeit the shares of Y?
2. Can the company forfeit the shares of X?
3. Can X transfer his shares?

Initial Public Offer and Further Public Offer

Distinguish between the following.

Fixed Price Issues and Book Building

Distinguish between the following:

Rights Shares and Bonus Shares

Distinguish between the following.

Transfer of Shares and Transmission of Shares

Answer in brief.

What is Book Building Method?

Answer in brief.

State the provisions for Rights Issue.

Answer in brief.

State the provisions related to Bonus Shares.

Answer in brief.

State the general principles/rules for allotment of shares.

Write notes on Contents of the share certificate. 

Answer in brief.

What are the effects of forfeiture of shares?

When can the Board of Directors refuse the transfer of shares?

Explain Employee Stock Option Scheme.

Answer in brief.

What is calls on shares?

Answer in brief.

What is transfer of shares?

Justify the following statement.

Company has to fulfill certain provisions while making Right Issue.

Justify the following statement.

To Issue Bonus Shares, a company has to fulfill certain provisions.

Justify the following statement.

ESOS is offered by a company to its permanent employees, Directors and Officers

Justify the following statement.

Company has to fulfill general principles/rules for allotment of shares.

Justify the following statement.

A company can issue duplicate share certificate.

Justify the following statement.

Board of Directors have the authority to forfeit shares.

Justify the following statement.

A member of a Public company can transfer shares.

Justify the following statement.

The Board of Directors can refuse transfer of shares.

Answer the following question.

Explain the classification of share capital.

Answer the following question.

Explain the two methods a company can use to make its public offer of shares.

Answer the following question.

Explain briefly the different types of shares offered by a company to its existing equity shareholders.

Explain the statutory provisions for allotment of shares.

Explain briefly the procedure for allotment of shares.