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Categories Of Share Capital

Authorised share capital:

A company estimates its maximum capital requirements. Mentioned in ‘Memorandum of Association’ registered with the registrar of companies. (Nominal)

Issued share capital:

A company need not issue total authorised capital. Issued capital means and includes the nominal value of shares issued by the company for.

Subscribed share capital:

It is that part of the issued share capital, which is subscribed by the public.

Called-up share capital:

 It is the amount called up on each share.

Paid-up share capital:

 It is the portion of called up capital which is paid by the shareholders.

Reserve share capital:

As per section 99 of the Companies Act, 195p6, a company may decide by passing a special resolution.

Reserve capital is different from capital reserve, capital reserve are part of ‘Reserves and surplus’

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