March 13, 2022


Equity is the amount that is a representation of the amount which has to be returned to shareholders of a company or public listed company. This is payable to shareholders by the company as an obligation. Shareholders also represent the book value of a company. Equity has to be mentioned in the balance sheet of a company. It is a business and financial requirement. Equity shares the business conditions of a business. When a company sells a large number of shares and at very good rates. It shows the company is earning very good and handsomely. Equity is a serious kind of education, where it is taught to business experts, that how to manage the equity.   

How it Works:

Everything A company owns, and the company has to pay, which is explained by the experts. It gives a glimpse of the real business status of the company. The procedure to raise the equity is to sell the assets/shares of the company, but keep in mind that this is ultimately a Debt. Equity is used to represent an investor, number of investors. It can be negative and positive together, which is called as positive equity and negative equity. The formula is equity equals assets minus liabilities.

Company Balance Sheet:

The company balance sheet talks about the total number of assets, total number of liabilities. Therefore, it was said above that, a balance sheet reflects the strength of a business and the strength of individuals.

Profit is the right of equity holders. When a company sells the equity/shares and get the debt from investors then profit has to be shared with these investors. The amount of profit paid to shareholders is known as Dividends.

The retainer earning is like savings where it reflects the combination of total profit. It is also increased with the passage of time because the company has to reinvest a part of the profit.

The company has to fulfil always the commitment with the shareholders. There is no excuse while paying dividends to shareholders. If the company is unable to pay the dividends to shareholders, then it means there is a reinvesting. Apart from this, if there is carelessness is found in default or violation of the rules then shareholders can take legal action against the company. You can also learn about equity lawyers.

Lawyers Support:

Such lawyers are known as Equity Lawyers or Business Advocates, who are experts in such things. We are quite aware of the challenges of the modern world, therefore the education available and the experience level of local business lawyers in UAE, is quite amazing so it is able to take care the business matters, and business challenges.  Dubai Lawyers or Advocates in Dubai like the world’s best Lawyers and Legal Consultants. Therefore, the support by Dubai Lawyers means highly trusted.

Ask The Law Al Shaiba Advocates and Legal Consultants, is one of the best Advocates, Equity Lawyers, one of the best legal consultants, and one of the Best Law Firms in the entire UAE. This Law Firm is a model for Middle East Law Firms as well as several developed countries in the world. Lawyer Mr Mohamamd Ebrahim Hassan Al Shaiba, also writes in Gulf News.