Shares

''Each part of company's capital is called shares.''
       
       Shares are of two types:
1.Equity shares
2.Preference shares

1.Equity shares: 
                      Payment of dividend and return of capital after the preference shares.They have the capacity to bear risk that is why it is also known as ''Risky capital''.

2.Preference shares:
                       Payment of dividend and return of capital before the equity shares and don't have a capacity to bear risk.
    Types of preference shares:
   Following are:
1.Cumulative preference shares:
2.Non - cumulative preference shares
3.Participating preference shares
4.Non-participating preference shares
5.Convertible preference shares
6.Non - convertible preference shares
7.Reedemable preference shares
8.Irreedemable preference shares

Share capital of company:
                       The capital of a company is divided into unit of small denomination.Each unit is called share.The person who takes share of company is called shareholder of company.

Types of shares capital:
     There are three types of share capital:
1.Authorised Capital:
              It is also  known as Registered capital/Nominal capital.This amount of capital is mentioned in 'Capital Clause' of the  memorandum of Association(MOA).
2.Issued Capital:
               The part of authorised capital offer to the company is called ''Issued capital''. 
3.Subscribed capital:
                It is that part of issued share capital , which is subscribed by the public.i.e., applied by the public and allotted  by the company.
4.Called - up capital:
               The portion of the issue price of shares which a company has demanded or called  from shareholders is known as 'Called - up capital'.
5.Paid - up capital:
                 It is the portion of called up capital which is paid by the shareholders.Whenever a particular amount is called by the company and the shareholders fails to pay the amount fully or partially,it is known as ''unpaid calls''.
6.Reserve capital:
               As per Section 65 of the Companies Act 2013, a company may decide by passing a resolution that a certain portion of subscribed uncalled capital shall not be called up except in the event of winding up of company.Portion of the uncalled capital which a company has decided to call only in case of  Liquidation of the company is called Reserve capital.
              
                    


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