Definition Of Equity Shares As Per Companies Act

A share in the share capital of the company including stock is the definition of the term share.

Definition of equity shares as per companies act. Reduction of stated capital sub part b dividends and. 1 this section applies in relation to a sale of shares that is an allotment of equity securities by virtue of f14 section 560 3 sale of shares held by company as treasury shares. Board may authorise distributions 62. Alteration in number of shares 54.

Explanation for the purposes of this rule it is hereby clarified that equity shares with differential rights issued by any company under the provisions of the companies act 1956 1 of 1956 and the rules made thereunder shall continue to be regulated under such provisions and rules. Companies act 2014 permanent page url. Rights to subscribe for or to convert securities into ordinary shares in the company. To make other provision relating to companies and other forms of business organisation.

This is in accordance with section 2 84 of the companies act 2013. 2 the directors of a company may be given power by the articles or by a special resolution of the company to allot equity securities as if section 561. Let us look at the various types of shares a company can issue equity shares and preferential shares. Shares not paid for in cash 58.

Time of issue of shares 61. To amend part 9 of the enterprise act 2002. A company or undertaking that is a trustee savings bank licensed under the trustee savings banks act 1989. Pre emptive rights to new issues 56.

Consent to issue of shares 60. Sweat equity shares sweat equity shares means such equity shares as are issued by a company to its directors or employees at a discount or for consideration other than cash for providing their know how or making available rights in the nature of intellectual property rights or value additions by whatever name called. Consideration for issue of shares 57. An act to reform company law and restate the greater part of the enactments relating to companies.

Calls on shares 59. Equity share capital or equity shares means in relation to a company its. Issued by a body or bodies prescribed for the purposes of this definition under section 943 1 h. And for connected purposes.