section for shares

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Nirmala.M (Querist)
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12 March 2010 I want to know different kinds of shares (ie-deferred share) and section for the definion of shares as per company act-1956.Please tell me the answer

Ankur Garg

Ankur Garg (Expert)
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12 March 2010 TYPES OF SHARE CAPITAL

In terms of the provisions of section 86 of the Act, the share capital of a company limited by shares shall be of two kinds only, namely:—

(a) equity share capital—
(i) with voting rights; or
(ii) with differential rights as of dividend, voting or otherwise in accordance with such rules and subject to such conditions as may be prescribed.

(b) preference share capital.

Equity share capital means all such share capital which is not preference share capital.

Regards