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CLSP

A share certificate documents shares held by a member in a company, specifying the number of shares and amount paid per share. Forfeiture of shares means removing shares from a shareholder for nonpayment of a call. Surrender of shares means a shareholder voluntarily returns shares to the company for cancellation. A lien on shares gives a company the right to retain a shareholder's shares and dividends due to outstanding debts owed to the company, such as unpaid call amounts. A share warrant is a document issued by a public company to shareholders as evidence of fully paid shares, entitling the bearer to the shares.

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116 views2 pages

CLSP

A share certificate documents shares held by a member in a company, specifying the number of shares and amount paid per share. Forfeiture of shares means removing shares from a shareholder for nonpayment of a call. Surrender of shares means a shareholder voluntarily returns shares to the company for cancellation. A lien on shares gives a company the right to retain a shareholder's shares and dividends due to outstanding debts owed to the company, such as unpaid call amounts. A share warrant is a document issued by a public company to shareholders as evidence of fully paid shares, entitling the bearer to the shares.

Uploaded by

Divakara Reddy
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SHARE CERTIFICATE: A share certificate is a document issued by a company under its common seal specifying the number of shares

held by a member and the amount paid on each share and evidencing the title of the member to those shares. What is Forfeiture of shares? Forfeiture of shares means the taking away of the shares of a shareholder by way of penalty for the nonrepayment of any call made on him, and compulsory termination of his membership What is Surrender of shares? Surrender of shares means the return or giving back of shares by a shareholder to the company voluntarily for cancellation. What is Lien on shares? Lien is the right of a person to retain the property of another person in respect of any lawful debt due from the latter to the former lien on shares is the right of a company to retain the shares and even the dividends payable thereon belonging to a shareholder in respect of the outstanding call amount or any other debt. A SHARE WARRANT A share warrant is a document issued by a public limited company under its common seal to its shareholders in respect of fully paid shares, stating that the bearer of the instrument (i.e., the share warrant) is entitled to the shares mentioned

Explain the various kinds of share capital.


The various kinds or sub-divisions of share capital are: 1. Authorised Capital, Registered Capital or Nominal Capital: Authorised capital is the sum stated in the capital clause of the memorandum of association as the capital of a company. It is the maximum amount of share capital, which the company is authorized by its memorandum of association to raise through the issue of shares. It is called authorized capital, because it is the capital, which a company is authorized to raise from the public. It is called registered capital, because it is the capital with which a company is registered. 2. Issued Capital: A company, usually, does not need the whole of the authorized capital in the beginning. It needs only a part of the authorized capital. So, in the beginning, it, usually, issues only a part of the authorized capital to the public for subscription. That part of the authorized capital to the public for subscription. 3. Subscribed Capital: There is no guarantee that the entire capital issued by a company to the public for subscription will be subscribed or taken up by the public. The public may subscribe in full or in part.

4. Called-up Capital: A company does not need the entire face value of the shares subscribed by the public immediately. So, it calls or demands only a part of the nominal value of the shares subscribed or taken up by the public immediately and collects the balance later, as and when necessary, by making further calls. That part of the subscribed capital, which has been called up or demanded by the company is called called-up capital. 5. Paid -up Capital: There is no guarantee that all the subscribers pay the full amount called up or demanded from them. In fact, in many cases, some of the subscribers do no pay the full amount called up from them. That means, often, only a part of the called-up capital may be paid by the subscribers or shareholders

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