Definition Of Equity Shares As Per Companies Act 2013
Rule 13 of companies share capital debentures rules 2014.
Definition of equity shares as per companies act 2013. The companies act 2013 has come up with new provisions for the conversion of loan into equity shares and the same are contained in section 62 3 of the said act. Therefore any person who holds the shares shall be the shareholders. The share capital of a company limited by shares shall be of two kinds namely a. Equity share capital may be of divided into.
Sweat equity shares 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. Let us look at the various types of shares a company can issue equity shares and preferential shares. The equity share capital i. For this section equity share capital 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. E in case the number of shares or other specified securities offered by the shareholders or security holders is more than the total number of shares or securities to be bought back by the company the acceptance per shareholder shall be on proportionate basis out of the total shares offered for being bought back. Equity share capital equity share capital with reference to any company limited by shares means all share capital which is not preference share capital. P reference share capital.
The new provisions are effective from april 1 2014. Rule 14 of companies prospectus allotment of securities rules 2014. As per section 2 88 of the companies act 2013 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. The position of shareholders of a company is very important and the scope of their functioning is very wide.
Does appointment of auditors to fill up vacancy form a part of tenure allowed u s 139 2 of the. I equity share capital with voting right. A share or the proportion of interest of a shareholder is equal to the proportion of the amount paid to the total capital payable to the company. The term share is defined in the act under section 2 84 to mean that the share capital of a company and includes stock.
I equity share capital with reference to any company limited by shares means all share capital which is not preference share capital. Allotment of equity shares as per companies act 2013.