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Secretarial Practice · Class 12 Commerce

Ch 3Issue of Shares — Class 12 Secretarial Practice, concept-first.

The previous chapter studied shares as one of the sources from which a company raises owned capital. This chapter turns to the other half of the picture that the Maharashtra HSC Secretarial Practice syllabus is really built around: not what a share is, but how a company actually goes about issuing one — the methods it…

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Key concepts

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Meaning and Kinds of Share Capital

A share, defined under Section 2(84) of the Companies Act, 2013, is the smallest unit of a company's share capital, and Section 43 permits a company to issue only two kinds — equity share capital, carrying no preferentia…

Most relevant Q&A

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

1

Meaning of a Share and Kinds of Share Capital

The previous chapter studied shares as one of the sources from which a company raises owned capital. This chapter turns to the other half of the picture that the Maharashtra HSC Secretarial Practice s…

2

Methods of Issue of Shares: Public Issue (IPO and FPO)

A company does not have only one route open to it when it wants to raise fresh share capital. The Companies Act, 2013 and the regulations of the Securities and Exchange Board of India (SEBI) between t…

3

Rights Issue and Bonus Issue

Two of the most frequently tested methods of issue in Maharashtra HSC Secretarial Practice are ones that involve existing shareholders rather than the general public: the rights issue and the bonus is…

4

Private Placement, Preferential Allotment, ESOS and Sweat Equity

Not every issue of shares is made to the public at large or to existing shareholders. Four further methods let a company raise capital from, or reward, a narrower, pre-identified group of people.

5

Procedure for a Public Issue of Shares: SEBI and the Prospectus

Because a public issue draws money from the general investing public, it is the most heavily regulated of all the methods of issue, and SEBI sits at the centre of that regulation.

6

Minimum Subscription, Allotment of Shares and the Share Certificate

Section 39 of the Companies Act, 2013 lays down the ground rules a company must follow before it can validly allot shares offered to the public.

7

Terms of Issue of Shares: At Par, At Premium and At Discount

Whatever method a company uses to issue its shares, the price it actually charges relative to the share's face value falls into one of three categories, and Secretarial Practice treats each with its o…

8

Duties of a Secretary in the Issue of Shares

The Company Secretary sits at the operational centre of every issue of shares a company makes, coordinating the legal, financial and administrative threads that run through the whole exercise from the…

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Distinction: Rights Issue and Bonus Issue, Public Issue and Private Placement, Premium and Discount

Bringing together the chapter's principal comparisons in one place makes a distinguish-type question far easier to answer accurately, since these three pairs are among the most frequently tested contr…

Exercises

+Show 11 questions11 questions
  1. Q1What is a share? State the kinds of share capital a company can issue under the Companies Act, 2013.Free
  2. Q2What is a public issue of shares? Distinguish between an Initial Public Offer (IPO) and a Further Public Offer (FPO).Free
  3. Q3Explain the rights issue of shares. What are its main features?Free
  4. Q4What is a bonus issue of shares? State the conditions that must be satisfied before a company can make a bonus issue.Preview
  5. Q5Distinguish between a rights issue and a bonus issue of shares.Preview
  6. Q6Explain private placement and preferential allotment as methods of issuing shares.Preview
  7. Q7What is meant by an Employee Stock Option Scheme (ESOS) and sweat equity shares?Preview
  8. Q8Explain the procedure followed by a company for a public issue of shares.Preview
  9. Q9What is meant by minimum subscription? Explain the provisions relating to allotment of shares and the issue of the share certificate.Preview
  10. Q10Explain the terms 'issue at par', 'issue at premium' and 'issue at discount'. Can a company lawfully issue shares at a discount?Preview
  11. Q12State the duties of a Company Secretary in the issue of shares by a company.Preview

Sample & Board Papers

Sample papers and previous-year board questions for this subject.

+Show 32 questions32 questions
  1. Q1State whether the following statement is True or False: Bonus shares are fully paid-up shares. (a) True (b) FalsePreview
  2. Q2Explain the following term/concept. Employee Stock Purchase Scheme (ESPS)Preview
  3. Q3Explain the following term/concept. Rights IssuePreview
  4. Q4Justify the following statement. A company can issue duplicate share certificate.Preview
  5. Q5______ is a proof of title to shares. (a) Share Certificate (b) Register of Member (c) Letter of AllotmentPreview
  6. Q6Share certificate is issued for partly or fully paid up shares. (a) True (b) FalsePreview
  7. Q7Find the odd one. (a) Face value (b) Market value (c) Redemption valuePreview
  8. Q8Select the correct option from the bracket. | | Group ‘A’ | | Group ‘B’ | | --- | --- | --- | --- | | (a) | Equity shares | (1) | ______ | |…Preview
  9. Q9Explain the following term/concept. Rights IssuePreview
  10. Q10Sai Ltd. Company is newly incorporated public company and wants to raise capital by selling equity shares to the public. The Board of Direct…Preview
  11. Q11Initial Public Offer and Further Public OfferPreview
  12. Q12Write notes on Contents of the share certificate.Preview
  13. Q13Explain the statutory provisions for allotment of shares.Preview
  14. Q14Find the odd one. (a) Bonus shares (b) Rights Shares (c) Employees Stock Option Scheme (ESOS)Preview
  15. Q15Correct the underlined word and rewrite the following sentence: **FPO** refers to offering of shares to the public for the first time.Preview
  16. Q16Explain the following term/concept: Bonus sharesPreview
  17. Q17Distinguish between the following: Rights Shares and Bonus SharesPreview
  18. Q18Explain Employee Stock Option Scheme.Preview
  19. Q19Correct the underlined word and rewrite the following sentence: **FPO** refers to offering of shares to the public for the first time.Preview
  20. Q20Explain the following term/concept: Rights IssuesPreview
  21. Q21Initial Public Offer and Further Public OfferPreview
  22. Q22Write notes on Contents of the share certificate.Preview
  23. Q23Explain the classification of share capital.Preview
  24. Q24Initial Public Offer and Further Public OfferPreview
  25. Q25Justify the following statement. Company has to fulfill certain provisions while making Right Issue.Preview
  26. Q26Explain briefly the procedure for allotment of shares.Preview
  27. Q27During the period of boom in the share market ______ are issued to raise capital. (a) bonds (b) debentures (c) equity sharesPreview
  28. Q28If a share of ₹ 100 is issued at ₹ 100, it is said to be issued at ______. (a) par (b) discount (c) premiumPreview
  29. Q29Write a word / term / phrase which can substitute the following statement: A type of shares which have preferential rights over equity share…Preview
  30. Q30Write short notes on the following: Bonus sharesPreview
  31. Q31State with reasons whether the following statement is True or False: It is compulsory to allot shares to every applicant.Preview
  32. Q32What is 'equity share'? Explain the features of equity shares. OR Draft a letter of allotment of shares.Preview

More questions

+Show 1 question1 question
  1. Q11Choose the correct option: Under the Companies Act, 2013, a company must file its return of allotment with the Registrar of Companies in For…Preview