Definition Equity Share Capital Companies Act

The equity capital act as a cushion for the lenders as with more and more equity base the company can easily raise additional funds on favorable terms.

Definition equity share capital companies act. This article talks about share capital and types of share capital under the companies act 2013. Preference shares are normally although not always entitled. This is in accordance with section 2 84 of the companies act 2013. In the companies acts equity share capital in relation to a company means its issued share capital excluding any part of that capital that neither as respects dividends nor as respects capital carries any right to participate beyond a specified amount in a distribution.

Thus it increases the creditworthiness of the company. Or ii with differential rights as to dividend voting or otherwise in accordance with such rules as may be prescribed. 2 share capital and debentures ii with differential rights as to dividend voting or otherwise in accordance with such rules as may be prescribed. And b preference share.

This entry was posted in chapter iv ca2013 companies act 2013 governance and responsibility and tagged bonus issue companies bill 2012 debentures duplicate share certificates equity shares esops other securities preferential allotment private placement public offer right issue share capital share certificates shares shares and securities special resolution sweat equity. A equity share capital i with voting rights. In the companies act 2006 in relation to a company a company s issued share capital excluding any part of that capital which neither as respects dividends nor as respects capital carries any right to participate beyond a specified amount in a distribution section 548 companies act 2006. Equity share capital section 43 of the act provides that the share capital of a company limited by shares shall be of two kinds.

Share capital thus known as owned capital of the company. Accountants have a much narrower definition and their definition rules on the balance sheets of public companies. Or share capital and debentures 1. The term share capital can mean slightly different things depending on the context.

548 equity share capital u k. And b preference share capital. Share means a share in the share capital of a company and includes stock. 548 equity share capital u k.

It denotes the amount of capital raised by the issue of shares by a company. Kinds of share capital effective from 1st april 2014 the share capital of a company limited by shares shall be of two kinds namely a equity share capital i with voting rights. A share in the share capital of the company including stock is the definition of the term share. In the companies acts equity share capital in relation to a company means its issued share capital excluding any part of that capital that neither as respects dividends nor as respects capital carries any right to participate beyond a specified amount in a distribution.