kinds of share capital

kinds of shae capital
the share capita of a company shall be o two kinds only, namely__1.Equity share capital2.Preference share capital.

Equity share capital

With voting rights, or with defferential rights as to dividend, voting or other wise in occurdence with such rules and subject to such conditions as may be prescribed. with reerence to any company limited by shares. are those which are not preference shares.

Preference shares:
preference shares, with reference to any company limited by shares, are those which have two cherecterstics;

1.they have a preference right to be paid dividend during the lifetime of a company;and

2.they have a preference rights to the return of capital when the company goes into liquidation.

difference between stock and share capital

the difference between shares and stock has been likend to the difference between a buckful of piace each one of which, though capable of being handled along with others,retains its identy as a seprate unit, and a buckful of water, each drop of which coalesces with the rest. the importent points of difference stock and shares as follows.

Kinds of preference shares:

1.cumulative preference shares.

2.non cummulative preference shares.

3.participative preference shares.

4.non-participative preference shares.

5.convertable preference shares.

6.redeemeble preference shares.


uncalled sahares:

This is the remainder of the issued capital which has not been called. the company may call this amount any time but this is subject to the terms of issues of shares and the provisions of the articles.