Share Capital

Share Capital Capital with which a company is started, consisting of shares issued to investors. At the start of a company, it is authorized to issue ascertain number of shares amounting to a certain sum of money. This is the authorized share capital. This may be raised subsequently by a resolution approved by the shareholders. However, not all of the initially authorized share capital needs to be issued. That part which has been issued is called issued share capital or subscribed share capital. Again, the subscribers to the share capital need not pay all the money at once. If the company chooses to ask for only a part of the money; the shares are called partly paid shares. Or called-up capital. The shares are fully paid when the full value f the shares is collected. Rights issues and bonus issues all add up to the share capital.

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