3. Share capital: share capital means a
particular amount of money with which a
business is started.
Share capital of the company is the capital
contributed by the shareholders.
This is the real capital of the company.
company need finances for business activities.
finances raised by issuing shares, share capital
5. Ordinary shares
Issue to general public
Provides right to share in profit (dividend)
Provides right to vote
Provides right to attend meetings
Preference shares
Issue to specific parties
Provides a specific fixed dividend
Payment is made before interest or ordinary dividend
Have no voting right
Redeemable preference shares
Company can redeem at any time
7. This is the maximum amount of capital which
a company can issue according to its
memorandum. It is also referred to, at times,
as registered capital. It is the total of the
share capital which a limited company is
allowed (authorized) to issue. Maximum
amount of capital, can be issued
10000 SHARES @ Rs. 10 100000
Share authorized = Shares issued + shares unissued
8. • That part of amount of authorized capital
which is offered by directors or
promoters for subscription.
9. • The part of amount of issued capital which
is taken by the people.
• Amount of capital issued to general public
Paid up capital
• That part of subscribed capital against
which money has been received.