Accounting

Share allotment is the process of creating and issuing new shares (Also see An Overview of Common Shares) carried out by a company. The company can issue new shares to either existing or new shareholders. After the share allotment has taken place, the company should record this event in its register of members within 14 … Read moreRegistering the Allotment of Shares

Some people may be confused by the terms “solvency” and “liquidity” as they thought that these terms bring the same meaning. Solvency refers to the ability of a company in maintaining its long-term operation. On the contrary, liquidity is the effectiveness of a company in covering its current liabilities by using its current assets (Also … Read moreSolvency and Liquidity

All the companies should keep records that consist of minutes of all proceedings and all resolutions of members, no matter whether the resolution has passed or not, in the meeting of members. Also, they need to keep records of the details provided to them. This refers to a situation when its sole (Also see An … Read moreThe Records of a Company’s Resolutions and Meetings

When we want to know how much Net worth refers to the total value of an individual or a company. It can apply to a person, an organisation, a sector or even a state or country. In the world of business, net worth also refers to the company’s book value or shareholder’s equity. This is … Read moreCalculations of Net Worth and Its Importance

A company constitution is a contract which summarises the company’s relationships with its directors, corporate secretary, as well as all its members. It includes the duties that control a company. These include the appointment or removal of the company’s directors, the transfer of shares (Also see What is Share Certificate?), allotment of shares, dividend payment, … Read moreThe Importance of Company Constitution

Most people might have heard of the term “net worth of a company” quite often. To put it simply, it refers to the company’s net earnings and assets after the deduction of all expenses and liabilities. You can calculate a company’s net worth by using two different methods. The first method is by taking the … Read moreCalculating a Company’s Net Worth