Types of Share Capital

Types of Share CapitalIt may be divided into the following types:-

  1. Authorized Registered or Nominal Capital

This represents the total amount of the share capital authorized by the Memorandum of Association and which the company has the power to issue.

  1. Issued Capital

This is the capital consisting of the number of shares that have been offered to the public for subscription for cash and to the vendors, as fully or partly paid.

  1. Un Issued Capital

This represents the amount of authorized capital of the company which has not yet been allotted and which may be issued at any time.

  1. Called Capital

This is the amount of money called upon the shares subscribed.

  1. Uncalled up Capital

This is a portion of subscribed capital that has not yet been called up by the company.

  1. Paid-up Capital

This is the portion of called up capital, which has been up the shareholders.

  1. Calls In Arrears

This represents the difference between the called up capital and the paid up.

  1. Reserve Capital

This the portion of subscribed capital which has not been called up except in the event and to wind up.

  1. Loan Capital

This is not capital, but this represents the creditors of the company. So loan capital is sometimes applied to debentures and other loans taken by a company for a fixed period.

  1. Capital Assets

The property of the company is called capital assets. It has two kinds, working capital and fixed capital.

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