Definition Of Equity Shares As Per Companies Act

Or ii with differential rights as to dividend voting or otherwise in accordance with such rules as may be prescribed.

Definition of equity shares as per companies act. A share in the share capital of the company including stock is the definition of the term share. Share capital under the companies act 2013 share means a share in the share capital of a company and includes stock. The taxation laws amendment act no 24 of 2011 added the definition of share to section 1 of the income tax act no 58 of 1962 the act. Before its amendment the term equity share capital was defined in relation to a company as its issued share capital and shares excluding any part thereof which neither as respects dividends nor as respects capital carries any right to participate beyond a specified amount in a distribution.

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. This is in accordance with section 2 84 of the companies act 2013. As per the section 2 88 of the companies act 2013 defines sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration other than cash for providing their know how or making available rights in the nature of intellectual property rights or value additions by whatever name called. With effect from 1 april 2012 a share was therefore defined as in relation to any company any share or similar equity interest in that.

This article talks about share capital and types of share capital under the companies act 2013. In other words a share is a measure of the interest in the company s assets held by a shareholder.