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A company memorandum of association defines how a company is limited in the business it can legally undertake. Memorandum of association sets out the relationship between company and outside world
An equity interest in a company may be said to represent a share of company assets and a share of any profit earned on those assets after other claims have been met. Equity shareholders are owners of business they purchase shares commonly called ordinary shares.
Debenture is a document issued by company containing an acknowledgment of indebtedness which it needs not to give although it usually gives a charge on the assets of a company. The Prospectus is a notice circular advertisement or other invitation offering to public for subscription or purchase any shares or debentures of a company.
Partnership or company limited by shares are the two forms of association open to a group of individuals who want to work together with one objective of carrying out trade to make profit or earn a living. Individual members of company are commonly known as shareholders while partnership members are called partners. Most people however don't differentiate between the two.
Company‘s act defines three types companies which are registered under different classifications. Types of companies include: Limited company, Guarantee Company and Unlimited company. These types companies are limited by shares. Owner also known as shareholders. Company is usually abbreviated as co.