Different types of Share Capital

The term "share capital" refers to the money that a corporation raises from investors by issuing shares to them.  Share capital is made up of money raised through the issuance of shares for cash or non-monetary considerations. Share capital is needed by businesses in order to finance their operations.  The issue of additional shares will raise the company's share capital. Equity share capital and preference share capital are the two types of share capital.  Preference share capital is acquired through the issuance of preference shares, whereas equity share capital is obtained through the raising of funds from investors. Authorized, issued, subscribed, called-up, and paid-up share capital are several types of share capital Authorized Capital: The amount of share capital for which a corporation is permitted to issue its Memorandum of Association is known as authorised capital. The amount of capital that is specified in the Memorandum of Association is the maximum that the firm may raise. It isoften referred to as nominal or registered capital. Issued Capital: This is the component of the authorised capital that is typically made available to the public for subscription and consists of the shares that have been allotted to the merchants and endorsers on the enterprise's memorandum. Subscribed Capital: Investors in the company subscribe for a portion of the issued capital that is referred to as subscribed capital. It represents the actual sum of money that the investors have borrowed. Called up Capital: Called up capital refers to the unpaid share capital that the stockholders still owe. The corporation is requesting payment of that particular portion of the share capital PaidUp:The part of calledup capital that has been paid for by the shareholder is known as paidup capital.The shareholder is not required to pay the amount that the corporation has demanded.The corporation may accept from the shareholder half of the called-up capital, also known as reserved capital. CONCLUSION Companies issue shares to raise money by diluting the ownership stake of the original stockholders.  The cost of a stock may occasionally change. As a result, it is best to make informed stock market investments.  In addition, the contrast between shares and shares capital confuses a lot of individuals.  While a shareholder's share is the portion of the money given to the company, a corporation's share capital is the money raised through the sale of stock to investors. BIBLIOGRAPHY https://byjus.com/commerce/categories-of-share-capital/ https://www.legalraasta.com/blog/types-of-share-capital/ Aishwarya Says: Law students often face problems, which they cannot share with their friends and families. We have started a column on our website Student’s Corner. In this column we are talking to several law... Continue Reading →

CRIMINAL LIABILITY FOR MIS STATEMENTS IN PROSPECTUS

A prospectus is a vital part of any business. In general, consumers search for a firm’s prospectus to determine whether or not they should invest in that company. It’s crucial that the things described in the prospectus are genuine. Companies create prospectuses because they want customers to come in and buy the firm’s debentures or... Continue Reading →

Prohibition on issue of shares at discount

Section 2(84) of the Companies Act 2013 defines share as “-a share in the share capital of a company including stocks.” Why a Company issues shares? A Company issues shares out of its share capital as authorized to do so, depending on the type of company it is and as per its incorporation documents i.e... Continue Reading →

JURISDICTION OF CIVIL COURTS IN COMPANY LAW TRIBUNAL

Civil courts are the lowest courts which take cognizance of all the suits of civil nature except few of which the jurisdiction is specifically ousted. In India, the functioning of civil court is guided by the Code of Civil Procedure, 1908. Section 9 of CPC brings out the jurisdiction of Civil Courts which reads as... Continue Reading →

ROLE OF AN OFFICIAL LIQUIDATOR

The Official liquidator is the officer of high court. He is appointed from the date of the order of the winding up. He has certain duties to perform under the Companies Act and he has to do all the required things in respect of compulsory winding up of a company according to the instruction of the high court.... Continue Reading →

SHARE CERTIFICATE

A share certificate is a written document issued by a company to act as legal proof of ownership of the number of shares as specified in the certificate. It can also act as a receipt towards the purchase and ownership of shares of a company. In simple words, it certifies the shareholder with registered ownership of... Continue Reading →

NATURE OF SHARES AND DEBENTURES

INTRODUCTION Every company is limited by shares must have a share capital. Share Capital of a company refers to the amount invested in the company for it to carry out its operations. The share capital may be altered or increased, subject to certain conditions. A company’s share capital may be divided into small shares of... Continue Reading →

WHAT ARE DEPOSITS?[1]

INTRODUCTION: In common terminology, the ‘deposit’ has always been understood as the function of banks and financial institutions (FIs) only. However, in the corporate world, it is not only restricted to the functions of banks and FIs, but a way of complimenting the requirements of working capital or raising funds for big corporate houses. There... Continue Reading →

TOPIC: WHAT IS EQUITY SHARE CAPITAL?

SHARES: A share is the share capital of the company including stock according to section 2(84) of the Companies Act 2013. A share is a measure of the interest in the company’s assets held by a shareholder. Kinds of share capital [S. 43] Capital must be divided into shares of a fixed amount. All the... Continue Reading →

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