Page 42 - IC26 LIFE INSURANCE FINANCE

UNIT 2: ISSUE, FORFEITURE AND REISSUE OF SHARES

Share Capital : Total capital of the company is divided into a number of small indivisible units of a fixed
amount each such unit is called a share. Share Capital of the company is divided into following
categories

Authorised Share Capital: A company estimates its maximum capital requirements. This amount of
capital is mentioned in capital clause of the 'Memorandum of Association’ registered with the Registrar
of Companies. It is also referred to as 'Registered Capital' or `Nominal Capital'.

Issued Share Capital: That portion of Authorised Share Capital which company issues to the public
is known issued Share Capital.

Subscribed Share Capital: It is that part of issued share capital which is subscribed by the public.

Called-up Share Capital : The portion of the issue price of shares which a company has demanded or
called from shareholders, is known as `Called-up Capital'.

Paid up Share Capital: It is the portion of called up capital which is paid by the shareholders.

Reserve Share Capital: That portion of the uncalled capital which a company has decided to call
only in case of liquidation of the company is called reserve capital.

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010