Share Capital
Q.What is meant by Share Capital? Describe the various forms of Share Capital.
Answer:-Meaning of Share Capital
The money invested in a business is called capital.
And the capital of a company is divided into shares. That is why it is called Share Capital.
Forms / Nature of Share Capital
The various forms of Share Capital are as follows:
1. Authorized Capital: Authorized capital is that part of the company's capital beyond which the company cannot issue more shares.
The company's registration is done with this capital. That is why it is also known as Registered Capital.
This capital is also mentioned in the Memorandum of Association of the company. That is why it is also known as Nominal Capital.
2. Issued Capital: Issued capital is that part of the authorized capital which is issued by the company.
3. Unissued Capital: Unissued capital is that part of the authorized capital which is not issued by the company.
4.SubscribedCapital : Subscribed Capital is the part of the issued capital which is purchased by the public.
5.Called-up Capital: Called-up Capital is the part of the issued capital which the company demands from its shareholders.
6.Uncalled Capital : Uncalled Capital is the part of the issued capital which the company does not demand from its shareholders.
7.Paid-up Capital: That part of the called-up capital which is paid to the company by the shareholders.
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