Share Capital of Company Meaning of Share Capital

Share Capital of Company

Meaning of Share Capital � Share capital is the amount of money that a company receives by the sale of its shares.

Description of Share Capital � � In Memorandum of Association In Articles of Association In Prospectus In Publication Subscribed Capital and Paid –up Capital Along with authorized capital should be described

Nature and Forms of Capital � � � Authorized, Nominal or Registered Capital Issued Capital Subscribed Capital Alloted Capital Called-up Capital Uncalled Capital Paid-up Capital Reserve Capital Fixed Capital Working Capital Watered Capital

Kinds of Share Capital � Equity Share Capital � Preference Share Capital

Methods of Alteration in Share Capital � � � Increase in Share Capital Consolidation and Division of Share Capital Conversion of Shares into Stock and Reconversion Sub-division of Share Capital Cancellation of Share Capital

Procedure of Alteration � � Acceptance of Ordinary Resolution Information to Registrar Effect of Conversion of Shares into Stock Notice of Increase of Share Capital

Reduction of Share Capital � � By writing –off Lost Capital By Refunding Surplus Capital By extinguishing or Reducing the Liability on Shares By Permission from the National Company Law Tribunal

Legal Restrictions for Reduction of Share Capital � � By Specified Companies Authorization by Articles By Special Resolution Confirmation by National Company Law Tribunal

Procedure for Reduction � � � By Passing a Special Resolution Application to the National Company Law Tribunal for Confirmation Objections by Creditors Preparing a List of Creditors Raising Objections Order Confirming Reduction Registration of Order

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