Share Capital

 Share Capital refers to the funds raised by a company by issuing shares to investors. It represents the owner’s equity in the business.

  • Classification:

    • Authorized (Nominal) Capital: The maximum amount of capital a company is authorized to raise (stated in the MoA).

    • Issued Capital: The part of authorized capital offered to the public for subscription.

    • Subscribed Capital: The part of issued capital for which the company has received applications.

    • Paid-up Capital: The actual amount of money paid by shareholders against the shares.

  • Nature: Under Section 44, shares are considered movable property and are transferable according to the company's Articles.

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