Company Accounts

What are Equity Shares

These are shares which gives the voting rights. So the equity shareholders are the real owners of the company as they participate in decision making. The voting rights are proportionate to the shares held with respect to the total equity share capital of the company. Equity shareholders can get the dividend only after the dividend

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Types of Preference Shares

Preference shares can be broadly classified based on following four criteria : Based on right to receive dividend There can be two kinds of preference shares : 1) Cumulative Preference Shares 2) Non-Cumulative Preference shares Cumulative preference shares are those shares which has the right to receive arreas of dividend. Suppose a company cannot pay

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Meaning of Share Capital

Companies will usually need huge capital to run the business. Such huge capital cannot be contributed by an individual or a small group of individuals. So for raising huge capital for running big business, thousands and lakhs of individuals and institutions will contribute money. So to facilitate the allocation of capital to so many individuals

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Minimum Subscription

Companies raise money from the public for running business. The amount of issue is not some ad hoc amount, but a carefully calculated amount based on business requirements. Suppose you have to buy a dress, which costs ru. pees 1000. If you have rupees 800 only can you buy the dress? The answer is no.

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