This document discusses the classification of company shares. It explains that company capital is divided into shares, which are movable property. Shares can be preference shares, equity shares, or deferred shares. Preference shares may be cumulative, non-cumulative, participating, convertible, or redeemable. Equity shares carry voting rights but lower priority in dividends than preference shares. Deferred shares have the lowest priority. The document also discusses issuing shares at par, premium or discount, underwriting shares, and defining types of share capital such as authorized, issued, subscribed, called-up, paid-up and reserve capital.

1. Classification
of shares

2.  The capital of the company usually divided
into a number of indivisible unit of specified
amt. Each of such unit is called share.

3.  Acc. to sec 82 of company act “a share of any
member in a company is movable property
transferable in the manner provided by the
article of the company.

4.  Preference shares
 Equity or ordinary shares
 Deferred shares

5.  Cumulative pref. shares
 Non-cumulative pref. shares
 Participating pref. shares
 Non-participating pref. shares
 Convertible pref. shares
 Non-Convertible pref. shares

6.  Redeemable pref. shares
 Irredeemable pref. shares
 Guaranteed pref. shares

7. 2. Equity shares
3. Deferred shares

8.  Right of dividend
 Return on capital
 Rate of dividend
 Certainty of dividend
 Redemption
 Voting rights
 Risk
 Necessity
 Type

9.  1. Issue of shares at par
 2. Issue of shares at premium
 3. Issue of shares at discount

10.  Restriction of first issue
 Time issue
 Rate of discount
 Ordinary resolution in general meeting
 Sanction by CLB
 Duration of issue
 Penalty

11.  Sweat equity shares (sec 79A)
 Bonus shares
 Right shares

12.  Meaning
 Purpose
 Cost
 Provision
 Authority
 Necessity

13.  Stock is the aggregate of fully paid-up shares
of a member merged into one fund of equal
value. It is a set of shares.

14.  Cannot be issued originally
 Only fully paid-up shares
 Provision in article
 Reconverted into shares

15.  It is a device used by companies for making
sure that the necessary cap. will come even if
the proposed issue gets a poor response of
the public.
 Underwriting commission
 Advantages

16.  Share capital means the capital raised by a
company by the issue of shares.

17.  Authorized or registered cap.
 Issued cap.
 Subscribed cap.
 Called-up cap.
 Uncalled cap.
 Paid-up cap.
 Reserve cap.
 Fixed cap.

18.  Floating cap.
 Working cap.

19.  Authorised by articles
 Resolution in general meeting
 Notice to registrar
 Changes by registrar
 Penalty
 Effect of conversion of shares into stock
 Information of increase of share capital

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