Share capital

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Share capital

  1. 1. SHARE CAPITALPresented by : SheetalNarkar<br />
  2. 2. SHARE CAPITAL<br />Share Capital : Capital raised by the company by the issue of shares.<br />Share Capital consists of various parts :<br />Authorized or Nominal Capital<br />Issued or Subscribed Capital<br />Called – up Capital<br />Paid – up Capital<br />Uncalled Capital<br />Reserve Capital<br />
  3. 3. <ul><li>Authorized Capital :
  4. 4. It is the nominal value of the shares which a company is authorized to issue by its Memorandum of Association
  5. 5. It is the maximum capital which a company will have during its lifetime unless it is increased.</li></ul>Authorized CAPITAL<br />
  6. 6. ISSUED CAPITAL<br /><ul><li>Issued Capital :
  7. 7. It is the nominal value of shares which are offered to the public for subscription.
  8. 8. Issued Capital < Authorized Capital
  9. 9. Issued Capital can never exceed Authorized Capital </li></li></ul><li><ul><li>Called up Capital :
  10. 10. It is the part of issued capital which has been called up on the shares
  11. 11. Uncalled Capital :
  12. 12. It is the remainder of the issued capital which has not been called up.
  13. 13. The company may call this amount any time</li></ul>CALLED UP & UNCALLED CAPITAL<br />
  14. 14. Paid - up & reserve capital<br /><ul><li>Paid up Capital :
  15. 15. It is the part of issued capital which has been paid up by the shareholders
  16. 16. Reserve Capital :
  17. 17. It is that part of uncalled capital of a company which can be called only in the event of its winding up</li></li></ul><li>SHARE CAPITAL<br />Capital Requirement (long run) = Rs. 1,000,000 <br />Current Requirement = Rs. 50,000. <br />Authorized Capital = Rs. 1,000,000<br />Issued Capital = Rs. 50,000 <br />(Issued shares)<br />
  18. 18. If you need 30,000 as current requirement :<br />Called – up Capital = Rs. 30,000<br />Uncalled Capital = Rs. 20,000<br />But you receive only Rs. 24,000<br />Paid up Capital = Rs. 24,000<br />SHARE CAPITAL<br />
  19. 19. ALTERATION OF CAPITAL (sec 94)<br /><ul><li>Increase the nominal share capital by issuing new shares
  20. 20. Divide all or any part of its share capital into shares of larger amount
  21. 21. Convert fully paid up shares into stock
  22. 22. Subdivide its shares or any part of them into shares of smaller amount
  23. 23. Cancel shares which have not been taken up</li>

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