According to Section 43 of the Companies Act, 2013 as we have already discussed in detail here, Equity share capital may be Equity Share Capital with voting right or Equity Share Capital with differential right as to dividend, voting or otherwise.
Rule 4 of the Companies (Share Capital and Debentures) Rules 2014 deals with equity shares with differential rights.
We have discussed earlier post The Company under the Companies Bill 2012 which is still relevant when the bill become Act; all companies do not have share capital. Only companies limited by shares have share capital.
KIND OF SHARE CAPITAL (SECTION 43):
The share capital of companies limited by share shall be of two kinds, namely;
(a) equity share capital;
(b) Preference share capital.
Here, use of two terms “Shall be” and “and” denote this is a requirement to have both kind of share capital but, according to further reading, company may have zero equity or preference share capital.
Posted in Chapter IV - CA2013, Companies Act 2013, Governance and Responsibility
Tagged Bonus Issue, Companies Bill 2012, Debentures, Duplicate Share Certificates, Equity Shares, ESOPS, Other Securities, Preferential Allotment, Private Placement, Public Offer, right issue, Share Capital, Share Certificates, Shares, Shares and Securities, Special Resolution, Sweat Equity, Tribunal, Variation, Voting Rights
Writer of this blog, Aishwarya Mohan Gahrana is Practicing Company Secretary and Insolvency Professional working with M/s Aishwarya M Gahrana & Associates, a New Delhi based peer reviewed firm of company secretaries having pan India presence through friends and associates. This blog is a knowledge sharing initiative. Views expressed here is of writer; not of the organization(s) he is working with.
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