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BRILLIANT’S Long Term Financing and Valuation of Goodwill & Shares 163

trol management of the company through their ‘¡ZoO‘|Q> H$mo CZHo$ dmoqQ>J amBQ²>g Am¡a ànmoe©ZoQ> Am°Za{en
voting rights. H$mo ~ZmE aIZo Ho$ A{YH$ma {Z`§{ÌV H$aZo _| gj_ hmoVo h¢Ÿ&
2. Voting rights: Ordinary shareholders 2. dmoqQ>J amBQ²>g… Am°{S>©Zar eo`ahmoëS>g© H$mo H$B©
have right to vote on a number of important _hÎdnyU© {ZU©`m| na dmoQ> XoZo H$m A{YH$ma hmoVm h¡Ÿ& do ~moS>©
matters. They can elect Board of Directors, Am°\$ S>m`aoŠQ>g© H$m MwZmd H$a gH$Vo h¢, do ‘o‘moaoÊS>‘
they can make changes in memorandum of Am°’$ Egmo{gEeZ H$mo ~Xc gH$Vo h¢Ÿ& àË`oH$ gmYmaU
association. Each ordinary share carries one eo`a H$m EH$ dmoQ> hmoVm h¡Ÿ& `{X EH$ ì`pŠV Ho$ nmg {H$gr
vote. If a person is having 1,000 shares of a
H$ånZr Ho$ 1,000 eo`a hm| Vmo CgHo$ nmg 1,000 dmoQ²>g
company, he will have right of 1,000 votes. He
can vote either in person or by proxy. Proxy hm|JoŸ& dh ì`pŠVJV ê$n go `m àm°Šgr Ûmam dmoQ> Xo gH$Vm
gives a person to use the right of vote on behalf h¡Ÿ& àm°Šgr, eo`ahmoëS>g© H$s Va\$ go dmoQ> H$m A{YH$ma Ho$
of shareholders. {cE Cn`moJ {H$E OmVo h¡Ÿ&
3. Claim on income: Ordinary share- 3. Am` na Xmdm… EŠgnoÝgog, Q>¡Šgog, B§Q>aoñQ>
holders have right to claim on the income which Am¡a {à\$a|g {S>{dS>oÝS> H$m ^wJVmZ H$aZo Ho$ ~mX eo¶ahmoëS>g©
is remaining after making payment of expenses,
taxes, interest and preference dividend. H$mo ~Mr Am` na Xmdm H$aZo H$m A{YH$ma hmoVm h¡Ÿ&
Dividend payable depends on the {X`m OmZo dmcm {S>{dS>oÝS²>g, H$ånZr Ho$ ~moS>© Am°\$
discretion of the Company's Board of Directors. S>m`aoŠQ>g© H$s BÀN>m na {Z^©a H$aVm h¡Ÿ& EH$ H$ånZr,
A company is not under a legal obligation to CncãY Am` _| go {S>{dS>oÝS²>g {dV[aV H$aZo Ho$ {cE
distribute dividends out of available earnings. H$mZyZr ê$n go ~mÜ` Zht h¡Ÿ& H¡${nQ>b JoÝg, gm_mÝ` eo`g©
Capital gains depend on future value of
ordinary shares. Thus a ordinary share is a H$s â`yMa d¡ë`y na {Z^©a h¡Ÿ& Bg{cE, BÝdoñQ>g© H$s Ñ{ï>
risky security from the investor's point of view. go Am°{S>©Zar eo`g©, Omo{I_ dmcr {gŠ`mo[aQ>r h¢& H§$nZr
Dividends paid on ordinary shares are not tax Ûmam gm_mÝ` eo¶g© na {X`m J`m {S>{dS>oÝS>g H$a _wŠV
deductible in the hands of the company. Zht hmoVm h¡Ÿ&
4. Claim of assets: Ordinary shareholders 4. gån{Îm`m| na Xmdm… {cpŠdS>oeZ H$s pñW{V _|
also have a residual claim on the company's H§$nZr H$s g§n{Îm`m| na gm_mÝ` eo¶ahmoëS>g© H$m ao{gS²>`yAc
assets in case of liquidation. Liquidation can Šco_ hmoVm h¡Ÿ& ì`mnma Ho$ Ag\$c hmoZo `m ì`dgm` H$mo
occur on account of business failure or sale of
business. Out of the realized value of assets, ~oMZo na {cp³dS>oeZ hmo gH$Vm h¡Ÿ& g§n{Îm`mo§ H$s àmßV
first the claims of debenture holders and then d¡ë`y _| go g~go nhco {S>~|Ma hmoëS>g© Ho$ Xmdm| H$mo Am¡a
preference shareholders are satisfied and the {\$a {à\$a|g eo`ahmoëS>g© Ho$ Xmdm| H$mo g§Vwï> {H$`m OmVm h¡
remaining balance, if any, is paid to ordinary VWm `{X CgHo$ ~mX Hw$N> eof ~Mo Vmo gm_mÝ` eo`ahmoëS>g©
shareholders. In the event of liquidation, the
claims of ordinary shareholders may generally H$mo ^wJVmZ {H$`m OmVm h¡Ÿ& {cpŠdS>oeZ _| gm_mÝ`V… Am°{S>©Zar
remain unpaid. eo`ahmoëS>g© H$mo ^wJVmZ Zht {H$`m OmVm h¡Ÿ&
5. Limited liability: Liability of an ordinary 5. gr{_V Xm{`Ëd… EH$ Am°{S>©Zar eo`ahmoëS>a H$m
shareholder is limited to the amount of shares Xm{`Ëd CgHo$ Ûmam {cE JE eo`g© VH$ hr gr{_V hmoVm h¡Ÿ&
taken by him. If he has already paid the amount `{X CgZo eo`g© H$s am{e nhco hr MwH$m Xr hmo Vmo H§$nZr Ho$
of shares, he is not required to pay anything if g_mnZ H$s Xem _| Cgo Hw$N> ^r am{e MwH$mZo H$s Amdí`H$Vm
the company is dissolved. This position of Zht h¡Ÿ& eo¶ahmoëS>g© H$s `h pñW{V, EH$c ñdm{_Ëd ì`mnma