Welcome to the official blog of the Law Offices of Kr. Vivek Tanwar Advocate and Associates, where we are dedicated to providing litigation support services for matters related to company law. In today’s blog post, we aim to shed light on the prevailing issues surrounding Corporate laws, the legal framework in place for their protection, and the steps we can take as a society to combat these acts. Join us as we explore this critical subject and empower you with the knowledge to protect your rights and safety.

Under company law, the different kinds of shares, debentures, and bonds are as follows:

Shares:

  1. Equity Shares: These represent ownership in the company and carry voting rights. Equity shareholders participate in the company’s profits and have the potential for capital appreciation.
  2. Preference Shares: These shares have preferential rights over equity shares. Preference shareholders are entitled to a fixed dividend before equity shareholders and have priority in the distribution of assets during liquidation.

Debentures:

  1. Convertible Debentures: These debentures can be converted into equity shares at a predetermined conversion ratio and within a specified period, as per the terms and conditions mentioned in the debenture instrument.
  2. Non-Convertible Debentures (NCDs): NCDs do not carry the option of conversion into equity shares. They offer fixed interest rates and are redeemed at maturity.

Bonds:

  1. Secured Bonds: These bonds are backed by specific assets or collateral provided by the company. Bondholders have a charge on the assets, which serves as security in case of default.
  2. Unsecured Bonds: Also known as debentures, these bonds are not backed by specific assets. They rely on the general creditworthiness of the issuing company.
  3. Government Bonds: Issued by the government to raise funds. They offer fixed or floating interest rates and are generally considered low-risk investments.
  4. Corporate Bonds: These bonds are issued by corporations to raise capital. They can be secured or unsecured and offer fixed or floating interest rates based on the terms of issuance.

The company law provides regulations and guidelines for the issuance, transfer, redemption, and repayment of shares, debentures, and bonds to ensure transparency and protect the interests of investors and stakeholders.

we are a law firm in the name and style of Law Offices of Kr. Vivek Tanwar Advocate and Associates at Gurugram and Rewari. We are providing litigation support services for matters related to Consumer laws. We have a website on which we publish blogs informing the litigants about the said laws. Draft a blog which can be published on our website…..

Written by: Adv. Priyanka Goel (D/945/2020) is an advocate practising in Gurugram. She has authored several articles on various topics and is passionate about women’s empowerment, Human rights and environmental law.

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