SPCC 2 Marks Each

Share Surrender means return of a share certificate by the shareholder to the company.

return on share is called share dividend like interest is received on bank deposit same way dividend is received on shares.

Share Application is the first step for purchasing shares in a company. When a person wants to purchase shares in a company, firstly share application money is to be submitted to the company.

The effects of share forfeiture are as follows (!) Name of shareholder is removed from the book (2) Such shareholder is eligible to receive a dividend (3) The company becomes the owner of such shares. (4) Share capital of the company is reduced (5)Membership of shareholders comes to an end.

Illegal Allotment is those share allotment that is made by violating the provisions of a lawful contract under the Indian Contract Act or SEBI or Articles of association of the company.

When a company allots shares without fulfilling statutory requirements of SEBI, such an Allotment of shares is called an Irregular allotment of shares.

The prospectus is a document used for inviting the general public to subscribe to the issued shares of the company. The prospectus is a legal and compulsory document of the company. It needs to be registered with the registrar of the companies and SEBI.

The sample of resolution regarding share approval is as follows. "Resolved that, it is decided that the number of shares mentioned in the share application submitted in the meeting of the Board of Governors held at Bhavnagar on 01-10-2019 and the number of applicants mentioned in the distribution form is approved."1...................................
2...................................
3....................................
Admin's signature.

Dividend means "the company has given its shareholder the share of the shares which they have assumed in the proportion of the shares held in cash, in the form of a share or in another form, from the dividend profit of the company".

The Company’s shareholder can assign the shares to the following circumstances:(1) When the share certificate torn.
(2) When share certificates become illegible.
(3) When there is no space left to record an entry of share transfer.
(4) When shares are to be consolidated.
(5) When shares are to be subdivided.

Sample of resolution regarding share installment is as follows. "Therefore, it is decided to order the first installment of Rs. 140 per share on 100000 equity shares of Digish Company Limited at a rate of Rs. The shareholders are requested to pay the proposed amount in the bank of different places mentioned in the notice on or before 31-03-2019. The Secretary is empowered to prepare an installment demand form and send it to the members. ”

In case the company invites the public to fill up the shares through advertisement, the application for shares by the investor is called "share application".

• The stages of the share application procedure are as follows.

(1) Opening a bank account.
(2) Receiving share requests.
(3) Classifying share applications.
(4) Preparation of share allotment form.

(1) In the first part of the letter of renunciation, the signature of the original shareholder states that he wants to share certain shares or all the shares in favor of some person.
(2) In the second part of the letter of renunciation, there is a request for share approval. The person who has been abandoned in favor of the person, who is in favor of the person, signs this section and requests the company to approve the shares in their own name.

The amount of the share application amount is to be blocked in the applicant's account in any of the branches sanctioned for the bank's ASBA.

• The next procedure is done on the basis of the signature of the applicant's bank account and the signature of the demat account according to the sample signature and demat account.
• Banks, after obtaining share applications, after blocking the application amount in each applicant's account, the company informs the registrar about it and assigns the amount to which the application's amount is blocked to the lead manager.

(1) The compulsory termination of the Member's membership from the date of the resolution of the share forfeiture.
(2) The shareholder also loses the right of dividend.
(3) Shareholders lose money paid on shares so far.
(4) Before the share forfeiture's decision, the shareholder becomes the company's ownership of the amount paid on the shares. The amount is deposited by the company in a forfeiture account. And the shares forfeiture account is closed after the re-issue of the share.
(5) The ownership of forfeited share is owned by company, and the Board of Directors can dispose of the shares as not less than the face value of the shares.
(6) The acquiring company can re-issue forfeited share due to the fall in the company's share capital.

Under the law of Indian Contract Act, the legal contract or other legitimate share allotment of the company is called an Illegal Share Allotment.

In addition to implementing the legitimate restrictions or provisions of shareholding, it is called Irregular Share Allotment.

An advertisement letter, inviting the public to buy securities through notice of any kind, circular, advertisement and other documents is called prospectus.