What are the kinds of share capital? Section 43 of Indian Companies Act 2013

Kinds of share capital is defined under Section 43 of Indian Companies Act 2013. Provisions under this section is:

Section 43 of Indian Companies Act 2013 "Kinds of share capital"

The share capital of a company limited by shares shall be of two kinds, namely:—
(a) equity share capital
(i) with voting rights; or
(ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed; and

(b) preference share capital:
Provided that nothing contained in this Act shall affect the rights of the preference shareholders who are entitled to participate in the proceeds of winding up before the commencement of this Act.

 

Explanation.—For the purposes of this section, (i) ‘‘equity share capital’’, with reference to any company limited by shares, means all share capital which is not preference share capital;

(ii) ‘‘preference share capital’’, with reference to any company limited by shares, means that part of the issued share capital of the company which carries or would carry a preferential right with respect to

(a) payment of dividend, either as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income-tax; and

(b) repayment, in the case of a winding up or repayment of capital, of the amount of the share capital paid-up or deemed to have been paid-up, whether or not, there is a preferential right to the payment of any fixed premium or premium on any fixed scale, specified in the memorandum or articles of the company;

(iii) capital shall be deemed to be preference capital, notwithstanding that it is entitled to either or both of the following rights, namely:—

(a) that in respect of dividends, in addition to the preferential rights to the amounts specified in sub-clause (a) of clause (ii), it has a right to participate, whether fully or to a limited extent, with capital not entitled to the preferential right aforesaid;

(b) that in respect of capital, in addition to the preferential right to the repayment, on a winding up, of the amounts specified in sub-clause (b) of clause ( ii), it has a right to participate, whether fully or to a limited extent, with capital not entitled to that preferential right in any surplus which may remain after the entire capital has been repaid.

What is Global depository receipt? What is Offer or invitation for subscription of securities on private placement? Section 41 and 42 of Indian Companies Act 2013

SHARE CAPITAL AND DEBENTURES

What are the kinds of share capital? Section 43 of Indian Companies Act 2013

What is the Nature of shares or debentures? What is Numbering of shares? What is  Certificate of shares? Section 44, 45 and 46 of Indian Companies Act 2013

What is Voting rights? What is variation of shareholders rights? Section 47 and 48 of Indian Companies Act 2013

Calls on shares of same class to be made on uniform basis. Company to accept unpaid share capital, although not called up. Section 49 and 50 of Indian Companies Act 2013

What is Payment of dividend in proportion to amount paid up? What is Application of premiums received on issue of shares. Section 51 and 52 of Indian Companies Act 2013

What is Prohibition on issue of shares at discount? What is the procedure for Issue of sweat equity shares? Section 53 and 54 of Indian Companies Act 2013

What is the rule for Issue and redemption of preference shares? Section 55 of Indian Companies Act 2013

What are the conditions for Transfer and transmission of securities? Section 56 of Indian Companies Act 2013

What is the Punishment for personation of shareholder? What is the Refusal of registration and appeal against refusal? Section 57 and 58 of Indian Companies Act 2013

What is Rectification of register of members and punishment for violation? What is Publication of authorised, subscribed and paid-up capital? Section 59 and 60 of Indian Companies Act 2013

 

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