{"id":12300,"date":"2021-12-10T12:34:35","date_gmt":"2021-12-10T07:04:35","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=12300"},"modified":"2024-12-24T16:36:42","modified_gmt":"2024-12-24T11:06:42","slug":"share-capital-types","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/","title":{"rendered":"Share Capital Types &#8211; Scholarszilla"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e1878cb85ab\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e1878cb85ab\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#Share_Capital_Types\" >Share Capital Types<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#What_is_Share_Capital\" >What is Share Capital?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#Share_Capital_Types-2\" >Share Capital Types<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#A_AuthorisedNominal_or_Registered_Capital\" >A. Authorised\/Nominal or Registered Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#B_Issued_and_Unissued_Capital\" >B. Issued and Unissued Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#C_Subscribed_and_Unsubscribed_Capital\" >C. Subscribed and Unsubscribed Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#D_Called-up_Capital_Uncalled_Capital_and_Reserve_Capital\" >D. Called-up Capital, Uncalled Capital and Reserve Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/share-capital-types\/#E_Paidup_Capital_and_Calls_in_Arrears\" >E. Paidup Capital and Calls in Arrears<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"Share_Capital_Types\"><\/span><strong>Share Capital Types<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-1024x576.jpg\" alt=\"Types of Shares Capital\" class=\"wp-image-12329 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/12\/Types-of-Shares-Capital.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption><strong><strong><strong><strong><strong>Share Capital Types<\/strong><\/strong><\/strong><\/strong><\/strong><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Share_Capital\"><\/span><strong>What is Share Capital? <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Share capital refers to the capital made up of Equity Shares and Preference Shares. Usually, in share capital, the proportion of Equity shares is more than Preference shares.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Share_Capital_Types-2\"><\/span><strong><strong><strong>Share Capital Types<\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_AuthorisedNominal_or_Registered_Capital\"><\/span><strong>A. Authorised\/Nominal or Registered Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Authorized Capital is the maximum capital authorized by the Memorandum of Association that a company can raise by issuing shares. It is also called as <strong>Registered Capital<\/strong> as it is mentioned in the capital clause of Memorandum of Association and the company pays stamp duty on this amount at the time of incorporation. <\/p>\n\n\n\n<p>Authorized Capital is calculated considering the need for the capital of a company at present and in the future.<br>Authorized Capital is also called as <strong>Nominal Capital<\/strong> as usually a company never issues the entire Authorised Capital.<\/p>\n\n\n\n<p>e.g. \u2018M\u2019 Ltd. The company has an Authorised Capital of Rs 20,00,000 which can be divided into 2,00,000 Equity shares having a face value of Rs 10 each. A company can increase its Authorised capital by altering its Memorandum of Association.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"B_Issued_and_Unissued_Capital\"><\/span><strong>B. Issued and Unissued Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Issued Capital is that part of Authorised Capital which is offered by the company to prospective investors for a subscription. Thus, it is the shares that the company is offering to the public to buy. <\/p>\n\n\n\n<p>The balance part of Authorised capital not offered to the public is called as <strong>\u2018Unissued Capital\u2019<\/strong>. In future, the company can issue shares from the unissued capital.<\/p>\n\n\n\n<p>The issued capital of a company may be equal to or less than the Authorised Capital.<\/p>\n\n\n\n<p>e.g. \u2018M\u2019 Ltd. Company can have an <strong>Issued Capital<\/strong> of Rs 8,00,000 divided into 80,000 Equity shares at face value of Rs 10\/- each and the <strong>unissued capital<\/strong> will be Rs 12,00,000 divided into 1,20,000 Equity shares of 10\/- each.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"C_Subscribed_and_Unsubscribed_Capital\"><\/span><strong>C. Subscribed and Unsubscribed Capital <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Subscribed capital is that part of Issued-capital which has been subscribed or taken up (bought) by investors (subscriber). The public may or may not subscribe for the entire Issued capital. Hence, that part of the Issued capital not subscribed by the investors is called as <strong>\u2018unsubscribed capital\u2019<\/strong>. Thus, the subscribed capital may be equal to or less than the Issued capital.<\/p>\n\n\n\n<p>e.g. If \u2018M\u2019 Ltd. Company has Issued capital of Rs 8,00,000 i.e. has issued 80,000 Equity shares, then the company\u2019s subscribed capital can be Rs 6,00,000 divided into 60,000 Equity shares of Rs 10\/- each. Hence, the unsubscribed capital will be Rs 2,00,000 divided into 20,000 Equity shares of Rs 10\/- each.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"https:\/\/scholarsclasses.com\/blog\/public-deposits-meaning\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/public-deposits-meaning\/\" rel=\"noreferrer noopener\">Public Deposit <\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/gdr-meaning\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/gdr-meaning\/\" rel=\"noreferrer noopener\">Global Depository Receipt (GDR)<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/features-of-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/features-of-shares\/\" rel=\"noreferrer noopener\">Features of Shares<\/a><\/li><li><a href=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-equity-shares\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/meaning-of-equity-shares\/\" rel=\"noreferrer noopener\">Meaning of Equity Shares<\/a><\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"D_Called-up_Capital_Uncalled_Capital_and_Reserve_Capital\"><\/span><strong>D. Called-up Capital, Uncalled Capital and Reserve Capital<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>At the time of the Issue, full value of the shares is usually not demanded by the company. The company collects the full value of shares in installments as per its requirement of funds. Each Instalment is called as \u2018<strong>calls<\/strong>\u2019. Called-up capital is that part of subscribed capital that a company has \u2018called\u2019 or demanded to be paid by the shareholders. <\/p>\n\n\n\n<p>The balance capital which is not demanded from the shareholders is called as <strong>uncalled capital<\/strong>. <\/p>\n\n\n\n<p><strong>Reserve Capital<\/strong> is a part of uncalled capital. A company can decide to keep aside a part of its uncalled capital to be called up only at the time of winding up of a company to meet its financial requirements.<\/p>\n\n\n\n<p>e.g. \u2018M\u2019 Ltd. Company may have called up capital of Rs 3,00,000 i.e. 60,000 Equity shares of face value of Rs 10\/- each out of which Rs 5\/- per share has been called up\/demanded by the company. <\/p>\n\n\n\n<p>If the company decides to keep Re. 1\/- per share as capital to be collected at the time of the winding up, the Reserve Capital will be Rs 60,000 i.e. 60,000 equity shares of Rs 10 each where Re. 1 per share is kept as Reserve Capital. <\/p>\n\n\n\n<p>Uncalled capital will be Rs 2,40,000 i.e. 60,000 Equity shares where Rs 4 per share which will be called up in future.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"E_Paidup_Capital_and_Calls_in_Arrears\"><\/span><strong>E. Paidup Capital and Calls in Arrears<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><strong>Paid-up capital<\/strong> is the total amount of money actually paid up by the shareholders when the company has called up or demanded them to pay.<br>The amount not paid up by the shareholders is called up as <strong>Calls in Arrears<\/strong> or <strong>unpaid calls.<\/strong><\/p>\n\n\n\n<p>Every shareholder has to pay calls as and when the company demands. Failure to pay the calls may lead to the <strong>forfeiture of shares.<\/strong><\/p>\n\n\n\n<p>e.g. \u2018M\u2019 Ltd. company has made a call of 5 per share, so if all the shareholders have paid the calls, then the paid up capital will be Rs 3,00,000 (60,000 Equity shares Rs 5\/- per share). But if for e.g. 5,000 Equity shares calls are not paid then the paid up capital will be 2,75,000 (55,000 Equity shares of Rs 5\/- per share) and Calls-in-Arrears will be Rs 25,000 (5,000 Equity shares of RS 5\/- per share)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":12329,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10],"tags":[4073],"class_list":["post-12300","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-educational-blogs","tag-shares-capital-types"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12300","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=12300"}],"version-history":[{"count":3,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12300\/revisions"}],"predecessor-version":[{"id":35734,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/12300\/revisions\/35734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/12329"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=12300"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=12300"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=12300"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}