Corporate loans: corporate loans, are loans given to companies to meet their working capital

requirements, fuel their expansion etc. A couple of examples are term loans, letter of credit etc.
Business loans, on the other hand, are loans given to companies and other such entities to
satisfy their daily expenses, fund their capital needs and growth, etc. they're also referred to as
as company loans. one or two of examples may include infrastructure finance, capital finance,
term loans, letter of credit etc.

Statutory Rights: These are the rights conferred upon the members by the Companies Act.
These rights cannot be taken away by the Articles of Association or Memorandum of
Association. Some of the important statutory rights are given below
i. Right to receive notice of meetings, attend, to take part in the discussion and vote at
the meetings.
ii. Right to transfer the shares [in case of public companies].
iii. Right to receive copies of the Annual Accounts of the company.
iv. Right to inspect the documents of the company such as register of members, annual
returns, etc.
v. Right to participate in appointments of directors and auditors in the Annual General
Meetings.
vi. Rights to apply to the Government for ordering an investigation into the affairs of
the company.
vii. Right to apply to the Court for winding up of the company.
viii. Right to apply to the National Company Law Tribunal for relief in case of oppression
and mismanagement under Secs. 397 and 398.

What is Commercial Paper?

Commercial paper is a commonly used type of unsecured, short-term debt instrument issued
by corporations, typically used for the financing of payroll, accounts payable and inventories,
and meeting other short-term liabilities. Maturities on commercial paper typically last several
days, and rarely range longer than 270 days. 1 Commercial paper is usually issued at a
discount from face value and reflects prevailing market interest rate

What Is a Timeshare?
A timeshare is a shared ownership model of vacation real estate in which multiple purchasers
own allotments of usage, typically in one-week increments, in the same property. The
timeshare model can be applied to many different types of properties, such as vacation resorts,
condominiums, apartments, and campgrounds.

What Is a Deep-Discount Bond?

A deep-discount bond is a bond that sells at a significantly lesser value than its par value. In
particular, these bonds sell at a discount of 20% or more to par and has a yield that is
significantly higher than the prevailing rates of fixed-income securities with a similar profiles.
These high-yield or junk bonds tend to have low market prices due to underlying concerns
about the issuers ability to repay interest or principal on the debt. This is not always the case
however, as zero-coupon bonds will often begin trading at a deep-discount even if the issuer is
very highly rated in terms of credit quality.

Who is a Beneficial Owner?

A beneficial owner is an individual who gets to enjoy ownership benefits even though
the title to some form of the property is in the name of another individual. It also refers to any
individual or group of individuals who have the power to vote
or control the transaction decisions, either directly or indirectly, with regards to specific
security, such as shares belonging to a company.

Beneficial ownership differentiates itself from legal ownership. In most of the cases, the legal,
as well as the beneficial owners, are the same. However, there are some situations where the
beneficial owner of a property may wish to remain anonymous, legitimate, and sometimes not-
so legitimate.

Internal reconstruction is a method in which the reconstruction is undertaken without winding

up the company and forming a new one. It involves a reduction in the share capital of the company.
It also relieves the company from its debts and losses through negotiation with the creditors. Thus,
we can say that it is the internal rearrangement of the financial structure of the company.
The various methods of internal reconstruction are:
1. Alteration of Share Capital: The alteration in the share capital can be done either by sub-division
and consolidation of shares or by conversion of shares into stock or stock into shares.
2. Variation of Shareholder’s rights: As per Section 47(7) of the Companies Act, 1956 the company
can vary the rights of the shareholders with the consent in writing of the holders of three-fourths of
the issued and outstanding shares of that class.  It can also do so with the sanction of a resolution
passed by a majority of the votes cast at a separate general meeting.
3. Reduction of Share Capital: The Company can reduce share capital by share cancellations or
buybacks.
4. Compromise/Arrangement: Under this method, an agreement is made between the company and
its members and outside liabilities in case of financial crisis whereby a sacrifice is made by the
shareholders, creditors or debenture holders.
 5. Surrender of Shares: In this method, the shareholders are made to surrender their shares so that
these can be allotted to debenture holders and creditors so as to reduce their liabilities.

Partly Convertible Debentures:

Under this, a portion of the debentures is converted into equity shares of the issuing company.
The conversion can take place at any time upon or after allotment of the debentures. If the
conversion takes place within 18 months of the date of allotment, the premium of the shares
could be fixed up front.

In case conversion takes place after 18 months but within 36 months, the investor will have a
put option. In case the conversion is to take place after 36 months, the investor will have a call
option. In case the debentures are to be issued with a maturity of more than 18 months, they
have to be secured and the issuer has to get the issue credit rated.

What are Equity Shares?

Equity shares are long-term financing sources for any company. These shares are issued to
the general public and are non-redeemable in nature. Investors in such shares hold the right
to vote, share profits and claim assets of a company. The value in case of equity shares can
be expressed in various terms like par value, face value, book value and so on.
Types of Equity Shares Available?
Ordinary Shares –
Preference Equity Shares –
Bonus Shares –
Rights Shares

Bearer Debentures
Bearer debentures are those which are payable to the bearer. These debentures are
transferable by mere delivery. The register of debenture holders does not have the names of
the debenture holder recorded. Hence they are transferable by mere delivery. Registration of
transfer is not necessary. Bearer debentures are also called as Unregistered Debentures

What Is Paid-Up Capital?

Paid-up capital is the amount of money a company has received from shareholders in exchange
for shares of stock. Paid-up capital is created when a company sells its shares on the  primary
market directly to investors, usually through an initial public offering (IPO). When shares are
bought and sold among investors on the secondary market, no additional paid-up capital is
created as proceeds in those transactions go to the selling shareholders, not the issuing
company.

KEY TAKEAWAYS

 Paid-up capital is money that a company receives from selling stock directly to investors.
 The primary market is the only place where paid-up capital is received, usually through
an initial public offering.
 Funding for paid-up capital is arrived at from two sources: the par value of stock and
excess capital.
 Paid-up capital is the amount paid by investors above the par value of a stock.
  Equity financing is represented by paid-up capital.

What is Preferential Payment?

Preferential payment is a payment or asset transfer to the creditor before  liquidation process.
Such creditors have advantage over other small creditors. A liquidator can recover funds
directly from the creditors. If liquidator is unable to recover, court order need to be obtained .
Only the liquidator can recover preferential payments. Provisional liquidator, administrator,
receiver or manager has no power to recover payments.

Following provisions are for preferential payments:

Under section 236 of companies Act 2013
1. All revenues, taxes, cesses and rates due to central government or state
government or local bodies and becoming due and payable within the
twelve months immediately before that date;
2. All wages or salary or commission of employees in respect of service
rendered by them to the company and due for a period not exceeding four
months within the twelve months immediately before the relevant date.
But are subject to specified limit.
3. All paid leave remuneration payable to any employee. In the case of his
death, to any person claiming under him. On the termination of his
employment also before or while winding up of company
4. If the company is going for voluntarily liquidation merely for the purposes of
reconstruction or amalgamation with another company then all amount
due in respect of contributions payable by the company as the
employer during the period of twelve months immediately preceding the
dateunder the Employees’ State Insurance Act, 1948 or any other law for
the time being in force;
5.  If the company is under a contract with any insurer(mentioned in section
14 of the Workmen’s Compensation Act, 1923). Then all amount due in
respect of any compensation under the said Act. This is in respect of the
death or disablement of any employee of the company