Page 121 - DCOM106_COMPANY_LAW

Company Law Sukhpreet Kaur, Lovely Professional University

Notes Unit 9: Share and Share Capital

CONTENTS
Objectives
Introduction

9.1 Shares
9.1.1 Share vs. Share Certificate
9.1.2 Share vs. Stock

9.2 Kinds of Shares
9.2.1 Preference Share
9.2.2 Participating and Non-participating Shares
9.2.3 Cumulative and Non-cumulative Preference Shares
9.2.4 Redeemable and Irredeemable Shares

9.2.5 Irredeemable Preference Shares
9.2.6 Equity Share
9.2.7 Cumulative Convertible Preference Shares (CCPS)

9.2.8 Deferred or Founders’ Shares
9.2.9 Non-voting Shares
9.2.10 Sweat Equity Shares
9.2.11 Bonus Shares
9.3 Alteration of Capital

9.3.1 Why alteration is required?
9.3.2 How it is done?
9.4 Share Capital

9.4.1 Alteration of Share Capital
9.5 Reduction of Share Capital
9.5.1 Procedure for Reduction of Capital
9.5.2 Reduction of Share Capital without the Sanction of the Court
9.5.3 Reduction of Capital vs. Diminution of Capital

9.6 Reorganisation of Capital
9.6.1 Issue of Shares to existing Shareholders
9.6.2 Public Issue of Shares

9.7 Voting Rights
9.8 Rights Shares

Contd...

116 LOVELY PROFESSIONAL UNIVERSITY