Key Differences

As per Section 61, Companies Act, 2013, the company can convert its shares which are fully paid up, into stock. A 'Share' is the smallest unit into which the company's capital is divided, representing the ownership of the shareholders in the company. A 'Stock' on the other hand is a collection of shares of a member that are fully paid up. When shares are transformed into stock, the shareholder becomes a stockholder, who possess same right with respect to the dividend, as a shareholder … [Read more...]

Communication is a natural phenomenon, it is an act of interacting with people and sharing information with them. Do you know, whether you speak or not, it communicates the message to the other party. There are two types of communication Verbal and Non-verbal. Verbal communication is a form of communication in which you use words to interchange the information with other people either in the form of speech or writing. On the contrary, Nonverbal communication does not use words for … [Read more...]

The company form of business organization enjoys a number of benefits over the partnership. This is due to the fact that, in a partnership firm, there must be at least two persons, mutually agree to run the business and share the profits or losses in a manner prescribed in the agreement. The maximum number of partners a partnership firm could have is only 20. This gave rise to the evolution of Company, in which there can be any number of members. The company is an association of persons who … [Read more...]

Equity shares are ordinary shares of the company that carry voting rights. On the contrary, preference shares have preferential rights in the matters of payment of dividend and repayment of capital. Capital is the lifeblood of any company. Therefore, once the company gets its certificate of commencement of business, it requires money for starting and running the business. The company can raise money by issuing shares or debentures. When the company arranges funds by issuing shares to the … [Read more...]

When we talk about a company, the terms shareholders and members are commonly used as synonyms, as one can become a member of the company, except by way of holding shares. In this way, a member is a shareholder and a shareholder is a member. The statement is true but not completely, as it is subject to certain exceptions, i.e. a person can become the holder of shares through transfer, but is not a member, until the transfer is entered in the register of members. In the same way, the … [Read more...]

 Someone said correctly "The very attempt of, not to speak, speaks a lot."Communication plays a crucial role in our life, as people interchange their ideas, information, feelings, opinions by communicating. Formal communication is one that passes through predefined channels of communication throughout the organization. On the contrary, Informal communication refers to the form of communication which flows in every direction, i.e. it moves freely in the organization. Communication could be … [Read more...]

Issuing shares is the primary method of raising funds for companies. Shares are the owned securities, and share capital is the owned capital. Generally, the capital of the company is divided into a number of equal units, i.e. shares. It describes the holder's right to the specified amount of the company's share capital. Conversely, debenture implies a long-term instrument showing the company's debt towards the external party. It yields a definite rate of interest, issued by the company and … [Read more...]