Scribd
Upload
6 views

Document (7)Share

Uploaded by

Shabnam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
6 views

Document (7)Share

Uploaded by

Shabnam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Shares

1. Definition

A share represents a unit of ownership in a company.

2. Shareholders

Individuals or entities that own shares in a company.

3. Kinds of Shares

 Ordinary Shares: Standard shares with voting rights and no fixed


dividend.
 Bonus Shares: Additional shares issued to shareholders without extra
cost, often from retained earnings.
 Deferred Shares: Shares with delayed rights to dividends until others
are paid.
 Preference Shares: Shares with a fixed dividend, prioritized over
ordinary shares.

4. Rights of Shareholders

1) Inspection of Documents: Right to access company records.


2) Appoint Directors: Participate in the selection of company directors.
3) Attend Meetings: Attend and vote in general meetings.
4) Remove Directors: Propose and vote on director removal.
5) Pass Resolutions: Participate in decision-making.
6) Appoint Inspectors: Ensure accountability in company operations.
7) Can Sue: Take legal action in case of violations.

5. Liability of Shareholders

Limited to the unpaid amount on shares held.

6. Loss of Membership

Occurs in specific situations:

a.On Winding Up: When the company is dissolved.

b. Sale of Company: Shareholder exits after ownership transfer.

c. Transfer of Shares: Selling or transferring shares to another party.

d. By Death: Membership ends upon a shareholder's death.


e. Defective Capacity: Loss due to mental or legal incapacity.

7. Timing for Issue of Certificate

Share certificates must be issued within the time prescribed by the


company’s regulations.

8. Security Types

Primary Security: Asset pledged directly by the borrower for loan security.

Secondary Security: Additional collateral provided to secure a loan.

9. Share Certificate

A document that certifies the ownership of shares in a company.

You might also like