Company b.com 1st semester Morning..(Mian BC 11004)

8/3/2019 Company b.com 1st semester Morning..(Mian BC 11004)

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Capital refers to the amount invested in the

company so that it can carry on its activities. in a

company capital refers to "share capital".

The capital clause in Memorandum of Association

must state the amount of capital.

A company cannot issue share capital in excess of

the limit specified in the Capital clause withoutaltering the capital clause of the MA.


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1. Nominal, Authorised or registered capital

Sum mentioned in the capital clause of Memorandum ofAssociation.

It is the maximum amount which the company raise byissuing the shares and on which the registration fee is paid.

2. Issued capital

That part of the authorised capital which has been offered for

subscription to members.3. Subscribed capital

That part of the issued capital at nominal or face value whichhas been subscribed or taken up by purchaser of shares in thecompany


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4. Called-up capital

Total amount of called up capital on the shares

issued and subscribed by the shareholders on capital

account.

5. Paid-up capital

Total amount of called up share capital which is

actually paid to the company by the members.


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1. Ordinary Shares

These carry to share in profits, If available and the

voting right.

2. Preference Shares

They carry the right to the fixed dividend on the

ordinary shares, but no voting right except when therights of the holders are effected.


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A document issued under the common seal of the

company and states the ,

Name and address of the holder

The number of shares held by him Their distinctive numbers

The amount paid up thereon

A certificate under the common seal of the companyspecifying any shares held by any member shall be

prima facie evidence of the title of the member to the

shares therein specified.


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Time for issue of share certificate

A company shall issue share certificates within 90days from the date of allotment.

Incase of transfer of shares, within 45 days from thedate of application

Delay case, the company and the officer responsibleliable to a fine not exceeding Rs. 100 for a day.

Duplicate Certificate (S

ection-75) Shall be issued within 45 days after inquiry that

original certificate has been lost, torned, defaced

Unable to issue it shall notify this fact within 30 days

from the date of application


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Company limited by shares, if authorized by its articles, may

alter the conditions of its memorandum Increase its share capital

consolidate & divide all or any of its share capital intoshares of a larger amount than its existing shares.If the company has 100 shares of Rs.10 each ( aggregating to Rs. 1000/-) it mayconsolidate those shares into 10 shares of Rs100 each.

sub-divide its shares or any one of them, into shares ofsmaller amount than is fixed by the memorandum

cancel shares, which have not been taken up or agreed to betaken any person

All these powers must be exercised by the company in theAGM

The new share shall carry the same rights as are given toshares previously issued.


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For reduction of capital, the following conditions are to

be fulfilled;

The authority to reduce the share capital must be

given by the articles.Where a company has passed a special resolution,

called A resolution for reducing share capital

(Section-97)

Company shall add, the words and reduced as the

last word of its name.


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Usually provided by the articles

An application is required may be made either by

transferor or transferee

Duly stamped and executed by the transferor alongwith the share certificates.

A shareholder has an absolute right to transfer his

shares, unless the articles provided otherwise

Company has no inherent power to refuse a bonafide

transfer of shares


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Can not refuse unless the transfer deed is invalid or

defected

In case of refusal, must notify this fact to theapplicant within 30 days from the date of application

Incase of Private Company, if any restriction on the

said matter, then the transfer shall be subject to those

restriction, directors can refuse the transfer on the

basis of those restrictions.


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An application from lawful successor dully supported

by documents evidencing nomination.

Nominee of deceased member on receipt of proof ofdeath of the members with share certificate. Only

spouse, father, mother, sister, and son, or daughter

( real, step, or adopted can be nominate)

Successor-in-interest means one who follows another

in ownership or control of property.

Company b.com 1st semester Morning..(Mian BC 11004)

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