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Meaning of share and share capital, kinds of share
capital & rules related to the alteration of share capital
Avinash Rai
BA.LLB 7th Sem
 Corporations issue shares which are offered for sale to
raise share capital.
 The owner of shares in the corporation is a of the
corporation.
. A share is an indivisible unit of capital, expressing the
ownership relationship between the company and the
shareholder.
The process of purchasing and selling shares often
involves going through a stockbroker as a middle man.
 Share capital denotes the amount of capital raised by
the issue of shares, by a company.
 A joint stock company should have capital in order
to finance its activities. It raises its capital by issue of
shares.
 When total capital of a company is divided into
shares, then it is called share capital.
 Share capital is owned capital of the company, since
it is the money of the shareholder and the
shareholder are the owners of the company.
 Authorized, registered, maximum or normal
capital.
 Issued Capital.
 Subscribed Capital
 Called Up Capital.
 Paid-up Capital.
 Reserve Capital.
 The value of equity capital is computed by
estimating the current market value of
everything owned by the company from which
the total of all liabilities is subtracted
 On the balance sheet of the company, equity
capital is listed as stockholders' equity or
owners' equity. Also called equity financing or
share capital.
 Preference share have been priority over
payment of dividend and repayment of
capital.
 Preferences shares do not hold voting rights.
1) Cumulative preference shares
2) Non cumulating preference shares
3) Redeemable preference share
 On the reduction of share capital, the extent of liability
of any past or present member on any call or
contribution shall not exceed the difference between the
amount paid on the share, or the reduced amount.
 If any, which is to be deemed to have been paid
thereon, by the member, and the amount of the shares
fixed by the scheme of reduction.
 If any officer of the company, who conceals the name
of the creditor or misrepresents the nature of the debt or
claim of the creditor who is entitled to object to the
reduction of the share capital.
Company law avi

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Company law avi

  • 1. My Topic Meaning of share and share capital, kinds of share capital & rules related to the alteration of share capital Avinash Rai BA.LLB 7th Sem
  • 2.  Corporations issue shares which are offered for sale to raise share capital.  The owner of shares in the corporation is a of the corporation. . A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. The process of purchasing and selling shares often involves going through a stockbroker as a middle man.
  • 3.  Share capital denotes the amount of capital raised by the issue of shares, by a company.  A joint stock company should have capital in order to finance its activities. It raises its capital by issue of shares.  When total capital of a company is divided into shares, then it is called share capital.  Share capital is owned capital of the company, since it is the money of the shareholder and the shareholder are the owners of the company.
  • 4.  Authorized, registered, maximum or normal capital.  Issued Capital.  Subscribed Capital  Called Up Capital.  Paid-up Capital.  Reserve Capital.
  • 5.  The value of equity capital is computed by estimating the current market value of everything owned by the company from which the total of all liabilities is subtracted  On the balance sheet of the company, equity capital is listed as stockholders' equity or owners' equity. Also called equity financing or share capital.
  • 6.  Preference share have been priority over payment of dividend and repayment of capital.  Preferences shares do not hold voting rights. 1) Cumulative preference shares 2) Non cumulating preference shares 3) Redeemable preference share
  • 7.  On the reduction of share capital, the extent of liability of any past or present member on any call or contribution shall not exceed the difference between the amount paid on the share, or the reduced amount.  If any, which is to be deemed to have been paid thereon, by the member, and the amount of the shares fixed by the scheme of reduction.  If any officer of the company, who conceals the name of the creditor or misrepresents the nature of the debt or claim of the creditor who is entitled to object to the reduction of the share capital.