PRESENTATION OF BUSINESS LAW FOR BBA

3. Share capital: share capital means a
particular amount of money with which a
business is started.
Share capital of the company is the capital
contributed by the shareholders.
This is the real capital of the company.
company need finances for business activities.
finances raised by issuing shares, share capital

4. Ordinary shares
Preference shares
Redeemable preference shares

5. Ordinary shares
Issue to general public
Provides right to share in profit (dividend)
Provides right to vote
Provides right to attend meetings
Preference shares
Issue to specific parties
Provides a specific fixed dividend
Payment is made before interest or ordinary dividend
Have no voting right
Redeemable preference shares
Company can redeem at any time

6. Authorized (nominal) capital
Issued capital
Subscribed capital
Paid up capital
Fully paid up capital

7. This is the maximum amount of capital which
a company can issue according to its
memorandum. It is also referred to, at times,
as registered capital. It is the total of the
share capital which a limited company is
allowed (authorized) to issue. Maximum
amount of capital, can be issued
10000 SHARES @ Rs. 10  100000
Share authorized = Shares issued + shares unissued

8. • That part of amount of authorized capital
which is offered by directors or
promoters for subscription.

9. • The part of amount of issued capital which
is taken by the people.
• Amount of capital issued to general public
Paid up capital
• That part of subscribed capital against
which money has been received.

10. Received full nominal value of the share
With the application for shares