In case of sole proprietorship and partnership there is limit of capital investment in business since in sole proprietor there is only one owner and in case of partnership, there also number of owners are limited. So where there is more capital required or nature of project is very big and that requires huge capital, those requirement demands companies form of organization in which capital is big and number of owners are not limited. According to section 2(84) of the companies act 2013, share means a share in the share capital of a company and includes stock.

SHARE CAPITAL:-Total share capital of company is divided into number of small indivisible units of a fixed amount and each unit is called share.

The fixed value of share printed on the share certificates called Nominal/ Par/ Face value of share. However company can issue share at a price different from face value of share i.e. at discount or premium. E.g. Share having face value Rs 100 can be issued at Rs 50/- premium on one share, so here issue price is Rs 150.

The liability of holder of shares (called shareholders) is limited to issue price of share acquired by them. According to SEBI guidelines, a company is free to price its issue if it has three years track record of consistent profitability and in case of New Company, if it has been promoted by company with a five years tracks record of consistent profitability. Since total capital of company is divided into shares, the capital of the company is called share capital. Document used to invite offer from public to subscribe share and debenture of company is called prospectus.

Demo Videos for CA/CMA/CS/B.Com/11-12th:

Visit Website:


Latest Blogs

Where To Get Best CMA Online Classes In India

COC Education is India's Best Institute To Get CMA Classes.

Who is The Best Faculty For Accounts?

You need the Best Faculty For Accounts, CA Exam Preparation, so that you can pass your exam with Flying Colors without wasting a single minute of your Precious Time. A Good Faculty will not only help you clear your exam but also help you achieve the highest rank Possible, which proves to be surely a great advantage in Job Placement after completing CA.

Best Video Lectures for Operations Management & Strategic Management (OMSM) CMA Inter Group-2

OMSM Operations Management and Strategic Management. Get your Video Lectures Operations Management and Strategic Management from COC Education

Corporate Financial Reporting By CA/CMA Santosh Kumar

CMA Students Get your Corporate Financial Reporting (CFR) Now from COC Education. CA/CMA Santosh Kumar is Providing Studio Recorded Classes for ???Corporate Financial Reporting.

Top Reviews

Introduction to Statistics for CA Foundation

Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics

Chapter X of Companies Act 2013

Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013

Relevant sections under the Companies Act, 2013 dealing with fraud and false statements

Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448

What is Corporate Image

What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage

What is Energy Audit

What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit