Prof. Gohar Mahmood
Ahtasham Khalid 8191
• Company equity that obtained by trading with share holders.
• Nominal value of all shares issued.
• Number and types of share that compose a company’s share
Various parts of Share Capital
• Authorized share capital
• Issued share capital
• Called up share capital
• Uncalled capital
• Paid up share capital
• Reserve capital
Total of the share capital which a limited company is allowed to issued.
• Registered capital
• Nominal capital
Shares authorized= Shares issued + Shares unissued
• Shares issued
Shares that are issued to shareholders.
• Shares unissued
Shares that never issued.
Issued share capital
It is the nominal value of shares which are offered to the public
Shares issued = Shares outstanding + Treasury shares
• Shares outstanding
Shares that are held by investors.
• Treasury shares
Shares that are held by company itself.
Called up share capital
• It is the part of capital which has been called up on the shares.
• Called up share capital is Value of the issued shares which have
remained fully or partially unpaid, and whose holders have now
been called upon to pay the balance.
Uncalled up share capital
• It is the remainder of the issued capital which has not been called up.
• The company may call this amount anytime.
Paid up share capital
• It is the part of issued capital which has been paid by the
Reserve share capital
• It is the part of uncalled capital of a company which can be called
only in the event of its winding up.
Types of share capital
There are two types of share capital:-
• Preference shares
Company stock with dividends that are paid to
shareholders before common stock dividends are paid out.
• Equity shares
These shares give right to shareholders to give opinion in
annual general meeting and have a right of vote.
• Voting shares
• Ordinary shares
Types regarding to issuance
• At par
shares are issued at its original price.
• At premium
shares are issued at high price (more than original price)
• At discount
shares are issued at low price (less than original price)